LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015
	2015		2014
Gross sales	$	19,000	$	15,000
Sales returns and allowances		1,000		100
Net sales	$	18,000	$	14,900
Cost of merchandise (goods) sold		12,000		9,000
Gross profit	$	6,000	$	5,900
Operating expenses:
Depreciation	$	700	$	600
Selling and administrative		2,200		2,000
Research		550		500
Miscellaneous		360		300
Total operating expenses	$	3,810	$	3,400
Income before interest and taxes	$	2,190	$	2,500
Interest expense		560		500
Income before taxes	$	1,630	$	2,000
Provision for taxes		640		800
Net income	$	990	$	1,200

LOGIC COMPANY Comparative Balance Sheet December 31, 2014 and 2015

2015

2014

Assets

Current assets:

Cash

$

12,000

$

9,000

Accounts receivable

16,500

12,500

Merchandise inventory

8,500

14,000

Prepaid advertising

24,000

10,000

Total current assets

$

61,000

$

45,500

Plant and equipment:

Building (net)

$

14,500

$

11,000

Land

13,500

9,000

Total plant and equipment

$

28,000

$

20,000

Total assets

$

89,000

$

65,500

Liabilities

Current liabilities:

Accounts payable

$

13,000

$

7,000

Salaries payable

7,000

5,000

Total current liabilities

$

20,000

$

12,000

Long-term liabilities:

Mortgage note payable

22,000

20,500

Total liabilities

$

42,000

$

32,500

Stockholders Equity

Common stock

$

21,000

$

21,000

Retained earnings

26,000

12,000

Total stockholders equity

$

47,000

$

33,000

Total liabilities and stockholders equity

$

89,000

$

65,500

Calculate net income (after tax) to the net sales. (Round your answers to the nearest hundredth.)

	2015	2014
Net income