LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600...

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LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 $18,600 $15,350 Gross sales Sales returns and allowances 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative 11,850 $ 6,750 $ 6,500 8,850 $ 2,650 760 $ 630 2,300 Research 610 530 Miscellaneous 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 Total operating expenses Income before interest and taxes Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: $12,300 $ 9,300 16,800 8,800 24,300 $62, 200 $46,700 Cash Accounts receivable Merchandise inventory Prepaid expenses 12,800 14,300 10,300 Total current assets Plant and equipment: Building (net) $14,800 $11,300 13,800 $28,600 $20,600 Land 9,300 Total plant and equipment Total assets $90,800 $67,300 Liabilities Current liabilities: $13,300 $ 7,500 Accounts payable Salaries payable 7,300 5,300 Total current liabilities $20,600 $12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $42,900 $33,600 Stockholders' Equity Common stock $21,500 $21, 200 Retained earnings 26,400 12,500 Total stockholders' equity $47,900 $33,700 Total liabilities and stockholders' equity $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 $18,600 $15,350 Gross sales Sales returns and allowances 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative 11,850 $ 6,750 $ 6,500 8,850 $ 2,650 760 $ 630 2,300 Research 610 530 Miscellaneous 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 Total operating expenses Income before interest and taxes Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: $12,300 $ 9,300 16,800 8,800 24,300 $62, 200 $46,700 Cash Accounts receivable Merchandise inventory Prepaid expenses 12,800 14,300 10,300 Total current assets Plant and equipment: Building (net) $14,800 $11,300 13,800 $28,600 $20,600 Land 9,300 Total plant and equipment Total assets $90,800 $67,300 Liabilities Current liabilities: $13,300 $ 7,500 Accounts payable Salaries payable 7,300 5,300 Total current liabilities $20,600 $12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $42,900 $33,600 Stockholders' Equity Common stock $21,500 $21, 200 Retained earnings 26,400 12,500 Total stockholders' equity $47,900 $33,700 Total liabilities and stockholders' equity $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio

Answer rating: 100% (QA)

The formula for Average days collection ratio is Average days collection 360 Accounts receivable... View the full answer