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