8. value: 1.13 points LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 2017 $20,200 1,000 $19,200 11,700 $ 7,500 2016 $15,900 100 $15,800 8,700 $7.100 Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes $ 820 3,100 670 $ 660 2,600 560 480 S 5,070 2.430 360 $ 4.180 $2,920 680 $1.750 700 560 $ 2.360 944 Net income S 1,050 S 1.416 LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017 2017 2016 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment Building (net) Land Total plant and equipment $ 12,500 17,100 9,100 9,600 13,100 14,600 10,600 $ 47,900 24,600 $ 63,300 S 15,000 14,100 S 29,100 $ 21.200 S 92 400 S 69,100 S 11,600 9,600 Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities Mortgage note payable Tolal liabilities S 7,600 5 600 $ 13,200 S 13,600 7.500 $ 21.100 22.500 21.100 S 34,300 S 43,600 Stockholders Equity S 21,700 13.100 S34.800 S 21,700 27.100 Common stock Relained earnings S 48,800 Total stockholders equity Total liabitities and stockholders equity $ 92 400 S 69,100 Calculate net income (after tax) to the net sales. (Enter your answer as a percentage rounded to 2 decimal places.) 2016 2017 % Net income