LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020
	2020		2019
Gross sales	$	22,000	$	17,250
Sales returns and allowances		1,000		100
Net sales	$	21,000	$	17,150
Cost of merchandise (goods) sold		11,250		8,250
Gross profit	$	9,750	$	8,900
Operating expenses:
Depreciation	$	1,000	$	750
Selling and administrative		4,450		3,500
Research		850		650
Miscellaneous		660		450
Total operating expenses	$	6,960	$	5,350
Income before interest and taxes	$	2,790	$	3,550
Interest expense		860		650
Income before taxes	$	1,930	$	2,900
Provision for taxes		772		1,160
Net income	$	1,158	$	1,740

LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020
	2020		2019
Assets
Current assets:
Cash	$	13,500	$	10,500
Accounts receivable		18,000		14,000
Merchandise inventory		10,000		15,500
Prepaid expenses		25,500		11,500
Total current assets	$	67,000	$	51,500
Plant and equipment:
Building (net)	$	15,900	$	12,500
Land		15,000		10,500
Total plant and equipment	$	30,900	$	23,000
Total assets	$	97,900	$	74,500
Liabilities
Current liabilities:
Accounts payable	$	14,500	$	8,500
Salaries payable		8,500		6,500
Total current liabilities	$	23,000	$	15,000
Long-term liabilities:
Mortgage note payable		23,600		22,000
Total liabilities	$	46,600	$	37,000
Stockholders Equity
Common stock	$	22,500	$	22,600
Retained earnings		28,800		14,900
Total stockholders equity	$	51,300	$	37,500
Total liabilities and stockholders equity	$	97,900	$	74,500

Calculate net income (after tax) to the net sales. (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.)