LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 Gross sales $21,800 2017 $17,100 Sales returns and allowances 800 100 Net sales $21,000 Cost of merchandise (goods) sold 11,300 $17,000 8,100 $ 9,700 $ 8,900 $ 980 $ 740 4,300 3,400 830 640 440 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 640 $ 6,750 $ 5,220 $ 2,950 $ 3,680 840 640 $ 2,110 $ 3,040 844 1,216 $ 1,266 $ 1,824 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 $13,400 $10,400 17,900 13,900 9,900 15,400 25,400 11,400 $66,600 $51,100 $15,900 $12,400 14,900 10,400 $30,800 $22,800 $97,400 $73,900 Liabilities Accounts payable Salaries payable Total current liabilities $14,400 $ 8,400 8,500 6,400 $22,900 $14,800 Long-term liabilities: Mortgage note payable 23,500 21,900 Total liabilities $46,400 $36,700 Stockholders' Equity Common stock $22,400 $22,400 Retained earnings 28,600 14,800 Total stockholders' equity $51,000 $37,200 Total liabilities and stockholders' equity $97,400 $73,900 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 Acid test ratio 2017