LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $24,899 $18,750 903 100 $23,100 $18,650 10,750 7,100 $12,350 $11,550 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 $ 1,200 $ 850 5,950 4, see 1,050 750 868 55e $ 9,068 $ 6,650 $ 3,299 $ 4,999 1,068 758 $ 2,238 $ 4,150 892 1,660 $ 1,338 $ 2,499 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 $11,080 $ 7,980 15,5ee 11,500 7,500 13,880 23,eee 9, eee $57,000 $41,480 $13,500 $10, 180 12,5ee 8,888 $ 26,000 $18, 100 $83,080 $59,580 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 $12,080 $ 6,180 6,080 4,080 $18,000 $10, 100 21, eee 19,480 $39,000 $29,500 $20,300 $20,300 23,700 9,789 $44,900 $30,000 $83,eee $59,500 Calculate the return on equity (after tax) ratio. (Round your answers to the nearest hundredth.) 2018 2017 Return on equity