LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015
	2015		2014
Gross sales	$	19,200	$	15,150
Sales returns and allowances		900		100
Net sales	$	18,300	$	15,050
Cost of merchandise (goods) sold		11,950		8,950
Gross profit	$	6,350	$	6,100
Operating expenses:
Depreciation	$	720	$	610
Selling and administrative		2,350		2,100
Research		570		510
Miscellaneous		380		310
Total operating expenses	$	4,020	$	3,530
Income before interest and taxes	$	2,330	$	2,570
Interest expense		580		510
Income before taxes	$	1,750	$	2,060
Provision for taxes		700		824
Net income	$	1,050	$	1,236

LOGIC COMPANY Comparative Balance Sheet December 31, 2014 and 2015
	2015		2014
Assets
Current assets:
Cash	$	12,100	$	9,100
Accounts receivable		16,600		12,600
Merchandise inventory		8,600		14,100
Prepaid expenses		24,100		10,100
Total current assets	$	61,400	$	45,900
Plant and equipment:
Building (net)	$	14,600	$	11,100
Land		13,600		9,100
Total plant and equipment	$	28,200	$	20,200
Total assets	$	89,600	$	66,100
Liabilities
Current liabilities:
Accounts payable	$	13,100	$	7,100
Salaries payable		7,100		5,100
Total current liabilities	$	20,200	$	12,200
Long-term liabilities:
Mortgage note payable		22,100		20,600
Total liabilities	$	42,300	$	32,800
Stockholders Equity
Common stock	$	21,100	$	21,100
Retained earnings		26,200		12,200
Total stockholders equity	$	47,300	$	33,300
Total liabilities and stockholders equity	$	89,600	$	66,100

Calculate the total debt to total assets ratio. (Enter your response as a decimal rounded to two places.)

	2015	2014
Total debt to total assets ratio

2.

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015
	2015		2014
Gross sales	$	23,000	$	18,000
Sales returns and allowances		800		100
Net sales	$	22,200	$	17,900
Cost of merchandise (goods) sold		11,000		7,600
Gross profit	$	11,200	$	10,300
Operating expenses:
Depreciation	$	1,100	$	800
Selling and administrative		5,200		4,000
Research		950		700
Miscellaneous		760		500
Total operating expenses	$	8,010	$	6,000
Income before interest and taxes	$	3,190	$	4,300
Interest expense		960		700
Income before taxes	$	2,230	$	3,600
Provision for taxes		892		1,440
Net income	$	1,338	$	2,160

LOGIC COMPANY Comparative Balance Sheet December 31, 2014 and 2015
	2015		2014
Assets
Current assets:
Cash	$	11,500	$	8,500
Accounts receivable		16,000		12,000
Merchandise inventory		8,000		13,500
Prepaid expenses		23,500		9,500
Total current assets	$	59,000	$	43,500
Plant and equipment:
Building (net)	$	14,000	$	10,500
Land		13,000		8,500
Total plant and equipment	$	27,000	$	19,000
Total assets	$	86,000	$	62,500
Liabilities
Current liabilities:
Accounts payable	$	12,500	$	6,500
Salaries payable		6,500		4,500
Total current liabilities	$	19,000	$	11,000
Long-term liabilities:
Mortgage note payable		21,500		20,000
Total liabilities	$	40,500	$	31,000
Stockholders Equity
Common stock	$	20,500	$	20,500
Retained earnings		25,000		11,000
Total stockholders equity	$	45,500	$	31,500
Total liabilities and stockholders equity	$	86,000	$	62,500

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

	2015	2014
Net income to net sales ratio