Drill Problem 16-14 (Algo) [LU 16-3 (2)] LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $23, 800 $18,600 Sales returns and allowances 1,000 100 Net sales $22,800 $18,500 Cost of merchandise (goods) sold 10,800 7,200 Gross profit $12,000 $11,300 Operating expenses: Depreciation $ 1,180 $ 840 Selling and administrative 5,800 4,400 Research 1,030 740 Miscellaneous 840 540 Total operating expenses $ 8,850 $ 6,520 Income before interest and taxes $ 3, 150 $ 4,780 Interest expense 1,040 740 Income before taxes $ 2, 110 $ 4,040 Provision for taxes 844 1,616 Net income $ 1,266 $ 2, 424 2020 2019 Assets Current assets: Cash $11,100 $ 8,100 Accounts receivable 15,600 11,600 Merchandise inventory 7,600 13, 100 Prepaid expenses 23, 100 9, 100 Total current assets $57, 400 $ 41,900 Plant and equipment: Building (net) $13,600 $10,200 Land 12,600 8, 100 Total plant and equipment $26,200 $18,300 Total assets $83, 600 $60,200 Liabilities Current liabilities: Accounts payable $12,100 $ 6,100 Salaries payable 6, 100 4,100 Total current liabilities $18,200 $10,200 Long-term liabilities: Mortgage note payable 21,100 19,600 Total liabilities $39, 300 $ 29,800 Stockholders' Equity Common stock $20,100 $ 20,100 Retained earnings 24, 200 10,300 Total stockholders' equity $44,300 $30, 400 Total liabilities and stockholders' equity $83,600 $60,200 Calculate the total debt to total assets ratio. (Do NOT enter your answer as a percent to the right). Enter it as a proportion rounded to the nearest hundredth.) 2020 2019 Total debt to total assets ratio