LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 Gross sales $23,200 2019 $18,150 Sales returns and allowances 1,000 100 Net sales $22,200 $18,050 Cost of merchandise (goods) sold 10,950 7,500 Gross profit $11,250 $10,550 Operating expenses: Depreciation $ 1,120 $ 810 Research Miscellaneous Selling and administrative Total operating expenses Income before interest and taxes 5,350 970 4,100 710 780 510 $ 8,220 $ 6,130 $ 3,030 $ 4,420 Interest expense Income before taxes. Provision for taxes Net income 980 710 $ 2,050 820 $ 3,710 1,484 $ 1,230 $ 2,226 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 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 Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: 2020 2019 $ 11,400 $ 8,400 15,900 7,900 23,400 11,900 13,400 9,400 $ 58,600 $ 43,100 $ 13,800 $ 10,400 12,900 8,400 $ 26,700 $18,800 $ 85,300 $ 61,900 $ 12,400 $ 6,400 6,400 4,400 $ 18,800 $ 10,800 Return to question Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5,400 4,400 $ 18,800 $ 10,800 21,400 19,900 $ 40,200 $ 30,700 $ 20,500 $ 20,300 24,600 10,900 $ 45,100 $31,200 $ 85,300 $ 61,900 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.) Answer is not complete. 2020 2019 Current ratio 0.26