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