LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $22,600 $17,700 Sales returns and allowances 1,000 100 Net sales $21,600 $17,600 Cost of merchandise (goods) sold 11,100 7,800 Gross profit $10,500 $ 9,800 Operating expenses: Depreciation $ 1,060 $ 780 Selling and administrative 4,900 3,800 Research 910 680 Miscellaneous 720 480 Total operating expenses $ 7,590 $ 5,740 Income before interest and taxes $ 2,910 $ 4,060 Interest expense 920 680 Income before taxes $ 1,990 $ 3,380 Provision for taxes 796 1,352 Net income $ 1,194 $ 2,028 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $11,700 $ 8,900 16,200 12,200 8, 200 13,700 23,700 9,700 $59,800 $ 44,500 $14,200 $ 10,700 13,200 8,700 $ 27, 400 $ 19,400 $87,200 $ 63,900 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 $12,700 $ 7,000 6,800 4,700 $19,500 $ 11,700 21,700 20, 200 $41,200 $ 31,900 $ 20,700 $20,800 25, 300 11,200 $ 46,000 $32,000 $87,200 $ 63,900 Calculate the current ratio. (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 Current ratio