LOGIC COMPANY omparative Income Statement For Years Ended December 31, 2016 and 2017 2016 Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses $22,000 $17,250 100 $21,000 $17,150 8,250 $ 9,750$ 8,900 2017 1,000 11,250 Depreciation $1,000 $ 750 3,500 650 450 $ 6,960 $ 5,350 $ 2,790 3,550 650 $ 1,930 $ 2,900 1,160 $1,158 1,740 4,450 850 660 Selling and administrative Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes Net income 860 772 LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017 2017 2016 Assets Current assets as Accounts receivable Merchandise inventory Prepaid expenses $ 13,500 10,500 14,000 15,500 11,500 $ 67,000 S51,500 18,000 10,000 25,500 Total current assets Plant and equipment Building (net) $ 15,900 12,500 10,500 $ 30,900 $ 23,000 $ 97,900 $ 74,500 15,000 Total plant and equipment Total assets Liabilities urrent liabilities Accounts payable $ 14,500 $ 8,500 6,500 $ 23,000 15,000 8,500 Salaries payable Long-term liabilities Total liabilities Total current liabilities Mortgage note payabl 23,600 22,000 $ 46,600 S 37,000 Stockholders' Equity Common stock Retained earnings $ 22,500 S 22,600 14,900 $ 51,300 S 37,500 $ 97,900 S 74,500 28,800 Total stockholders' equity Total liabilities and stockholders' equity Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2017 2016 Acid test ratio