$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

LOGIC COMPANY $\backslash \backslash$

Comparative Income Statement

$\backslash$end$\{$tabular$\}\}\backslash \backslash$

$\backslash$hline Gross sales & $\backslash$$ $19,000$ & $\backslash$$ $15,000\backslash \backslash$

$\backslash$hline Sales returns and allowances & $1,000$ & $100\backslash \backslash$

$\backslash$hline Net sales & $\backslash$$ $18,000$ & $\backslash$$ $14,900\backslash \backslash$

$\backslash$hline Cost of merchandise $($goods$)$ sold & $12,000$ & $9,000\backslash \backslash$

$\backslash$hline Gross profit & $\backslash$$ $6,000$ & $\backslash$$ $5,900\backslash \backslash$

$\backslash$hline Operating expenses: & & $\backslash \backslash$

$\backslash$hline Depreciation & $\backslash$$ $700$ & $\backslash$$ $600\backslash \backslash$

$\backslash$hline Selling and administrative & $2,200$ & $2,000\backslash \backslash$

$\backslash$hline Research & $550$ & $500\backslash \backslash$

$\backslash$hline Miscellaneous & $360$ & $300\backslash \backslash$

$\backslash$hline Total operating expenses & $\backslash$$ $3,810$ & $\backslash$$ $3,400\backslash \backslash$

$\backslash$hline Income before interest and taxes & $\backslash$$ $2,190$ & $\backslash$$ $2,500\backslash \backslash$

$\backslash$hline Interest expense & $560$ & $500\backslash \backslash$

$\backslash$hline Income before taxes & $\backslash$$ $1,630$ & $\backslash$$ $2,000\backslash \backslash$

$\backslash$hline Provision for taxes & $640$ & $800\backslash \backslash$

$\backslash$hline Net income & $\backslash$$ $990$ & $\backslash$$ $1,200\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$LOGIC COMPANY Comparative Balance Sheet December $31,2022$ and $2023\}\backslash \backslash$

$\backslash$hline & $2023$ & $2022\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Assets$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Current assets:$\}\backslash \backslash$

$\backslash$hline Cash & $\backslash$$ $12,000$ & $\backslash$$ $9,000\backslash \backslash$

$\backslash$hline Accounts receivable & $16,500$ & $12,500\backslash \backslash$

$\backslash$hline Merchandise inventory & $8,500$ & $14,000\backslash \backslash$

$\backslash$hline Prepaid expenses & $24,000$ & $10,000\backslash \backslash$

$\backslash$hline Total current assets & $\backslash$$ $61,000$ & $\backslash$$ $45,500\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Plant and equipment:$\}\backslash \backslash$

$\backslash$hline Building $($net$)$ & $\backslash$$ $14,500$ & $\backslash$$ $11,000\backslash \backslash$

$\backslash$hline Land & $13,500$ & $9,000\backslash \backslash$

$\backslash$hline Total plant and equipment & $\backslash$$ $28,000$ & $\backslash$$ $20,000\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$ $89,000$ & $\backslash$$ $65,500\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Liabilities$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Current liabilities:$\}\backslash \backslash$

$\backslash$hline Accounts payable & $\backslash$$ $13,000$ & $\backslash$$ $7,000\backslash \backslash$

$\backslash$hline Salaries payable & $7,000$ & $5,000\backslash \backslash$

$\backslash$hline Total current liabilities & $\backslash$$ $20,000$ & $\backslash$$ $12,000\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Long$-$term liabilities:$\}\backslash \backslash$

$\backslash$hline Mortgage note payable & $22,000$ & $20,500\backslash \backslash$

$\backslash$hline Total liabilities & $\backslash$$ $42,000$ & $\backslash$$ $32,500\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Stockholders$\text{'}$ Equity$\}\backslash \backslash$

$\backslash$hline Common stock & $\backslash$$ $21,000$ & $\backslash$$ $21,000\backslash \backslash$

$\backslash$hline Retained earnings & $26,000$ & $12,000\backslash \backslash$

$\backslash$hline Total stockholders' equity & $\backslash$$ $47,000$ & $\backslash$$ $33,000\backslash \backslash$

$\backslash$hline Total liabilities and stockholders' equity & $\backslash$$ $89,000$ & $\backslash (\backslash$$ $65,500\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Calculate the current ratio.

Note: 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.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline & $2023$ & $2022\backslash \backslash$

$\backslash$cline $\{1-1\}$ Current ratio & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

SOLVE FOR CURRENT RATIO