For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $22,800 $17,850 Sales returns and allowances 900 100 Net sales $21,900 $17,750 Cost of merchandise (goods) sold 11,050 7,700 Gross profit $10,850 $10,050 Operating expenses: Depreciation $ 1,080 $ 790 Selling and administrative 5,050 3,900 Research 930 690 Miscellaneous 740 490 Total operating expenses $ 7,800 $ 5,870 Income before interest and taxes $ 3,050 $ 4, 180 Interest expense 940 690 Income before taxes $ 2, 110 $ 3,490 Provision for taxes 844 1, 396 Net income $ 1,266 $ 2,094 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash Accounts receivable Merchandise inventory $11,800 $ 8,600 16, 100 12,100 8, 100 13,600 Current assets: Cash $11,800 $ 8,600 Accounts receivable 16, 100 12, 100 Merchandise inventory 8, 100 13,600 Prepaid expenses 23,600 9,600 Total current assets $59, 600 $43, 900 Plant and equipment: Building (net) $14,000 $10,600 Land 13, 100 8,600 Total plant and equipment $27,100 $19, 200 Total assets $86,700 $63, 100 Liabilities Current liabilities: Accounts payable $12,600 $ 6,600 Salaries payable 6,700 4,600 Total current liabilities $19,300 $11,200 Long-term liabilities: Mortgage note payable 21,600 20, 100 Total liabilities $40,900 $31,300 Stockholders' Equity Common stock $20, 600 $20, 700 Retained earnings 25, 200 11,100 Total stockholders' equity $45,800 $31, 800 Total liabilities and stockholders' equity $86,700 $63, 100 Calculate the asset turnover ratio. (Enter your response as a decimal rounded to 2 places.) 2020 2019 Asset turnover ratio dollar sales per $1 of assets Drill Problem 16-9 (Algo) (LU 16-3 (2)] LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $19,400 $15,300 Sales returns and allowances 800 100 Net sales $18,600 $15, 200 Cost of merchandise (goods) sold 11,900 8,900 Gross profit $ 6,700 $ 6,300 Operating expenses: Depreciation $ 740 $ 620 Selling and administrative 2,500 2,200 Research 590 520 Miscellaneous 400 320 Total operating expenses $ 4,230 $ 3,660 Income before interest and taxes $ 2,470 $ 2,640 Interest expense 600 520 Income before taxes $ 1,870 $ 2, 120 Provision for taxes 748 848 Net income $ 1,122 $ 1,272 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $12,100 $ 9,300 16, 700 12,700 8,700 14, 200 24, 200 10, 200 $61,700 $ 46,400 $14,600 $11,200 13,700 9, 200 $28,300 $20,400 $90,000 $66,800 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment 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 $13,200 $ 7,200 7,200 5, 200 $20,400 $12,400 22,400 20,700 $42,800 $33, 100 $21,100 $21,100 26, 100 12,600 $47,200 $33,700 $90,000 $66,800 Calculate the acid test ratio. (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.) 2020 2019 Acid test ratio
