Extracted text: LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $20,600 $16,200 800 Gross sales 100 Sales returns and allowances $19,800 $16,100 11,600 $ 8,200 $ 7,500 Net sales 8,600 Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $ 3,400 860 $ 680 2,800 710 580 Miscellaneous 520 380 $ 5,490 $ 4,440 $ 2,710 $ 3,060 Total operating expenses Income before interest and taxes Interest expense 720 580 $ 1,990 $ 2,480 796 Income before taxes Provision for taxes 992 Net income $ 1,194 $ 1,488 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $12,800 $ 9,800 13,300 14,800 10.800 Accounts receivable 17,300 9,300 Merchandise inventory Prepaid expenses 24.800 Prou
Extracted text: 2018 2017 Assets Current assets: $12,800 $ 9,800 17,300 9,300 Cash Accounts receivable Merchandise inventory Prepaid expenses 13,300 14,800 10,800 24,800 $64,200 $48,700 Total current assets Plant and equipment: Building (net) $15,300 $11,800 14,300 9,800 Land Total plant and equipment $29,600 $21,600 Total assets $93,800 $70,300 Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities $13,800 $ 7,800 7,800 $21,600 $13,600 5,800 Long-term liabilities: Mortgage note payable Total liabilities 22,700 $44,300 $35,000 21,400 Stockholders' Equity $21,800 $21,800 27,700 $49,500 $35,300 $93,800 $70,300 Common stock Retained earnings 13,500 Total stockholders' equity Total liabilities and stockholders' equity Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio