LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 Gross sales Sales returns and allowances 2020 $21,400 2019 $16,800 1,000 100 Depreciation Research Miscellaneous Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Selling and administrative Total operating expenses $20,400 $16,700 11,400 8,400 $ 9,000 $ 8,300 $ 940 $ 720 4,000 790 3,200 620 600 420 $ 6,330 $ 4,960 Income before interest and taxes $ 2,670 Interest expense 800 Income before taxes Provision for taxes Net income $ 1,870 748 $ 1,122 $ 3,340 620 $ 2,720 1,088 $ 1,632 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 Assets 2020 2019 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: $ 13,200 $ 10,200 17,700 13,700 9,700 15,200 25,200 11,200 $ 65,800 $50,300 $ 15,700 $ 12,200 14,700 10,200 $ 30,400 $ 22,400 $ 96,200 $ 72,700 Accounts payable Salaries payable Total current liabilities. Long-term liabilities: Mortgage note payable Total liabilities Stockholders' Equity $14,200 8,200 $ 8,200 6,200 $ 22,400 $ 14,400 23,200 $ 45,600 21,700 $ 36,100 E Long-term liabilities: Mortgage note payable Total liabilities Common stock Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 23,200 21,700 $ 45,600 $36,100 $ 22,200 $22,100 28,400 14,500 $ 50,600 $36,600 $ 96,200 $ 72,700 Calculate the acid test 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 Acid test ratio 2019