voria dve For Years Ended December 31, 2017 and 2018 2018 2017 $22,600 $17,700 1.000 100 $21,800 $17,600 11,100 7,800 $10.500 9.800 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 $ 1.050 S 780 4,900 3.800 910 680 720 480 $ 7,590 5 5,740 $ 2,910 5 4,050 920 680 $ 1.990 $ 3.380 798 1,352 S 1,194 $ 2.028 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 $ 11,700 S 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 $63,000 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 abilities: 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 $48,000 $32,000 $87,200 $63,900 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio 2.23 1.48