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Calculate net income (after tax) to the net sales.(Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to
Calculate net income (after tax) to the net sales.(Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) Net income to net sales 2020 2019 Gross sales LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 $19,000 2019 $15,000 Sales returns and allowances 1,000 100 Net sales $18,000 $14,900 Cost of merchandise (goods) sold 12,000 9,000 Depreciation Research Gross profit Operating expenses: Selling and administrative Miscellaneous Total operating expenses Income before interest and taxes $ 6,000 $ 5,900 $ 700 $ 600 2,200 2,000 550 500 360 300 $ 3,810 $ 3,400 $ 2,190 Interest expense Income before taxes Provision for taxes Net income 560 $ 2,500 500 $ 1,630 $ 2,000 640 800 $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment 2020 2019 $ 12,000 $ 9,000 16,500 12,500 8,500 14,000 24,000 10,000 $ 61,000 $45,500 $ 14,500 $11,000 13,500 9,000 $28,000 $20,000 $ 89,000 $ 65,500 Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $13,000 7,000 $ 20,000 $ 7,000 5,000 $ 12,000 22,000 20,500 $ 42,000 $ 32,500 $ 21,000 $21,000 26,000 $ 47,000 12,000 $ 33,000 $ 89,000 $ 65,500
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