LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $ 23, 800 $18,600 Sales returns and allowances 1,000 100 Net sales $22,800 $18,500 Cost of merchandise (goods) sold 10,800 7,200 Gross profit $12,000 $11,300 Operating expenses: Depreciation $ 1,180 $ 840 Selling and administrative 5,800 4,400 Research 1,030 740 Miscellaneous 840 540 Total operating expenses $ 8,850 $ 6,520 Income before interest and taxes $ 3,150 $ 4,780 Interest expense 1,040 740 Income before taxes $ 2,110 $ 4,040 Provision for taxes 844 1,616 Net income $ 1,266 $ 2,424 December 31, 2019 and 2020 2020 2019 $11,100 $ 8,100 15,600 11,600 7,600 13,100 23,100 9,100 $ 57,400 $ 41,900 $ 13,600 $10,200 12,600 8,100 $ 26,200 $ 18,300 $ 83,600 $60,200 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 $12,100 $ 6,100 6,100 4,100 $ 18,200 $ 10, 200 21,100 19,600 $ 39,300 $ 29,800 $ 20,100 $ 20,100 24, 200 10,300 $ 44,300 $30, 400 $ 83,600 $ 60,200 Calculate net income (after tax) to the net sales. (Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) 2020 2019 Net income to net sales