**LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,000 $15,000 1,000 100 $18,000 $14,900 12,000 9,000 $ 6,000 $ 5,900 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 $ 700 $ 600 2,200 2,000 550 500 360 300 $ 3,810 $ 3,400 $ 2,190 $ 2,500 560 500 $ 1,630 $ 2,000 640 800 $ 990 $ 1,200 Net income Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment $12,000 $ 9,000 16,500 12,500 8,500 14,000 24,000 10,000 $61,000 $45,500 $14,500 $11,000 13,500 9,000 $28,000 $20,000 $89,000 $65,500 Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities $13,000 $ 7,000 7,000 5,000 $20,000 $12,000 22,000 20,500 $42,000 $32,500 Stockholders' Equity Common stock Retained earnings $21,000 $21,000 26,000 12,000 7,000 5,000 $20,000 $12,000 22,000 20,500 $42,000 $32,500 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 $21,000 $21,000 26,000 12,000 $ 47,000 $33,000 $89,000 $65,500 Calculate the total debt to total assets ratio. (Round your answers to the nearest hundredth.) 2018 2017 Total debt to total assets ratio Calculate the return on equity (after tax) ratio. (Round your answers to the nearest hundredth.) 2018 2017 Return on equity