LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $21,800 $17,100 800 100 $21,000 $17,000 11,300 8,100 $9,700 $ 8,900 $ 988 $ 748 4,300 3,400 830 640 640 448 $ 6,750 $ 5,220 $ 2,950 $3,680 640 840 $2,110 $3,040 844 1,216 $1,266 $ 1,824 2018 2017 $13,400 $10,400 17,900 13,900 9,900 15,400 25,400 11,400 $66,600 $51,100 $15,900 $12,400 14,900 10,400 $30,800 $22,800 $97,400 $73,900 $14,400 $ 8,400 8,500 6,400 $22,900 $14,800 23,500 21,900 $46,400 $36,700 Stockholders' Equity Common stock $22,400 $22,400 Retained earnings 28,600 14,800 Total stockholders' equity $51,000 $37,200 Total liabilities and stockholders' equity $97,400 $73,900 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio 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 Current assets: Cash LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 Assets Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment Total assets Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities Liabilities