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 2017 $23,000 $18,000 800 100 $22,200 $17,900 11,000 7,600 $11,200 $10,300 $ 1,100 $ 800 5,200 4,000 950 760 700 500 $ 8,010 $ 6,000 $ 3,190 $ 4,300 960 $ 2,230 700 $3,600 892 1,440 $ 1,338 $ 2,160 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 Assets 2018 2017 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: $11,500 $ 8,500 16,000 12,000 8,000 13,500 23,500 9,500 $59,000 $43,500 $14,000 $10,500 Accounts payable Salaries payable Total current liabilities 13,000 8,500 $27,000 $19,000 $86,000 $62,500 Liabilities $12,500 $ 6,500 6,500 4,500 $11,000 Long-term liabilities: Mortgage note payable $19,000 21,500 20,000 Total liabilities $40,500 $31,000 Stockholders' Equity Common stock $20,500 $20,500 Retained earnings 25,000 11,000 Total stockholders' equity $45,500 $31,500 Total liabilities and stockholders' equity $86,000 $62,500 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.) Asset turnover ratio 2018 2017