LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $20,800 $16, 350 1.800 100 $19,800 $16,250 11,550 8,550 $ 8,250 $ 7,790 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 390 $ 889 $ 690 3,558 2,900 730 598 548 $ 5,709 $ 4,578 $ 2,550 $ 3,130 590 $ 1,819 $ 2,540 724 1,016 $ 1,086 $ 1,524 748 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 $12,880 $ 9,900 17,480 13,480 9,480 14,900 24,988 10,980 $64,500 $49, 100 $15,480 $11,700 14,4ee 9,900 $29,800 $21,600 $94,300 $70,700 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 $13,980 $ 7,900 7,980 5,900 $21,800 $13,800 22,980 21,400 $44,780 $35, 200 $22,000 $22,800 27,680 13,500 $49,600 $35,500 $94,300 $70,700 Calculate net income (after tax) to the net sales. (Round your answers to the nearest hundredth.) 2018 2017 Net income to net sales