LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 $18,600 $15,350 Gross sales Sales returns and allowances 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative 11,850 $ 6,750 $ 6,500 8,850 $ 2,650 760 $ 630 2,300 Research 610 530 Miscellaneous 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 Total operating expenses Income before interest and taxes Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: $12,300 $ 9,300 16,800 8,800 24,300 $62, 200 $46,700 Cash Accounts receivable Merchandise inventory Prepaid expenses 12,800 14,300 10,300 Total current assets Plant and equipment: Building (net) $14,800 $11,300 13,800 $28,600 $20,600 Land 9,300 Total plant and equipment Total assets $90,800 $67,300 Liabilities Current liabilities: $13,300 $ 7,500 Accounts payable Salaries payable 7,300 5,300 Total current liabilities $20,600 $12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $42,900 $33,600 Stockholders' Equity Common stock $21,500 $21, 200 Retained earnings 26,400 12,500 Total stockholders' equity $47,900 $33,700 Total liabilities and stockholders' equity $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio