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 -5 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) $ 13,500 $ 10,500 18,000 14,000 10,000 15,500 25,500 11,500 $ 67,000 $51,500 $ 15,900 $12,500 $ 67,000 $51,500 $ 15,900 $12,500 15,000 10,500 $ 30,900 $23,000 $ 97,900 $ 74,500 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 $ 14,500 $ 8,500 8,500 6,500 $ 23,000 $15,000 23,600 $ 46,600 22,000 $ 37,000 $ 22,500 $ 22,600 28,800 14,900 $51,300 $37,500 $97,900 $74,500 Calculate the asset turnover ratio. (Enter your response as a decimal rounded to 2 places.) X Answer is complete but not entirely correct. 2020 2019 Asset turnover ratio 0.24 X 0.24 X dollar sales per $1 of assets