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LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $19,600 $15,450 Sales returns and allowances 1,000 100
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $19,600 $15,450 Sales returns and allowances 1,000 100 Net sales $18,600 $15, 350 Cost of merchandise (goods) sold 11,850 8,850 Gross profit $ 6,750 $ 6,500 Operating expenses : Depreciation $ 760 $ 630 Selling and administrative 2,650 2,300 Research 610 530 Miscellaneous 420 330 Total operating expenses $ 4,440 $ 3,790 Income before interest and taxes $ 2,310 $ 2,710 Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $ 12,300 $ 9,300 16,800 12,800 8,800 14,300 24,300 10,300 $ 62,200 $ 46,700 $ 14,800 $ 11,300 13,800 9,300 $ 28,600 $ 20,600 $ 90,800 $ 67,300 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 $ 13,300 $ 7,500 7,300 5,300 $ 20,600 $ 12,800 22,300 20,800 $ 42,900 $33,600 $ 21,500 $ 21,200 26,400 12,500 $ 47,900 $33,700 $ 90,800 $ 67,300 Calculate the average day's collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.) 2020 2019 Average day's collection ratio Days
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