LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 100 $18,600 $15, 350 11,850 8,850 $ 6,750 $ 6,500 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 $ 760 $ 630 2,650 2,300 610 530 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 620 530 $ 1,690 $ 2,180 676 872 $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 $12,300 $ 9,300 16,800 12,800 8,800 14,300 24,300 10,300 $62,200 $46,700 $14,800 $11,300 13,800 9,300 $28,600 $20,600 $90,800 $67,300 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: Mortgage note payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $13,300 $ 7,500 7,300 5,300 $20,600 $12,800 22,300 20,800 $42,900 $33,600 $21,500 $21,200 26,400 12,500 $47,900 $33,700 $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio