LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $22,200 $17,400 900 100 $21,300 $17,300 11,200 8,050 $10,100 $ 9,250 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 $ 1,020 $ 760 4,600 3,600 870 660 680 460 $ 7,170 $ 5,480 $ 2,930 $ 3,770 880 660 $ 2,050 $ 3, 110 820 1, 244 $ 1,230 $ 1,866 Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 $11,900 $ 8,900 16,400 12,400 8,400 13,900 23,900 9,900 $60,600 $45, 100 $14,400 $10,900 13,400 8,900 $27,800 $19,800 $88,400 $64,900 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 $12,900 $ 6,900 6,900 4,900 $19,800 $11,800 21,900 20,400 $41,700 $32,200 $20,900 $21,808 25,800 11,700 $46,700 $32,700 $88,400 $64,900 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio