LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes Net income 2018 $24,000 900 2017 $18,750 100 $23,100 $18,650 10,750 7,100 $12,350 $11,550 $ 1,200 $ 850 5,950 1,050 860 4,500 750 550 $ 9,060 $ 6,650 $ 3,290 $ 4,900 1,060 750 $ 2,230 $ 4,150 892 1,660 $ 1,338 $2,490 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 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 Current liabilities: 2018 2017 $11,000 $ 7,900 15,500 11,500 7,500 13,000 23,000 9,000 $57,000 $41,400 $13,500 $10,100 12,500 8,000 $26,000 $18,100 $83,000 $59,500 Liabilities Accounts payable Salaries payable Total current liabilities $12,000 6,000 $18,000 $10,100 $ 6,100 4,000 Long-term liabilities: Mortgage note payable Total liabilities 21,000 $39,000 $29,500 19,400 Stockholders' Equity Common stock $20,300 $20,300 Retained earnings 23,700 9,700 Total stockholders' equity $44,000 $30,000 Total liabilities and stockholders' equity $83,000 $59,500 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.) Asset turnover ratio 2018 2017