Drill Problem $16-12($Algo$)[$LU $16-3(2)]$

LOGIC COMPANYComparative Income StatementFor Years Ended December $31,2022$ and $202320232022$Gross sales$ $21,000$$ $16,500$Sales returns and allowances$900100$Net sales$ $20,100$$ $16,400$Cost of merchandise $($goods$)$ sold$11,5008,500$Gross profit$ $8,600$$ $7,900$Operating expenses:$$Depreciation$ $900$$ $700$Selling and administrative$3,7003,000$Research$750600$Miscellaneous$560400$Total operating expenses$ $5,910$$ $4,700$Income before interest and taxes$ $2,690$$ $3,200$Interest expense$760600$Income before taxes$ $1,930$$ $2,600$Provision for taxes$7721,040$Net income$ $1,158$$ $1,560$

LOGIC COMPANYComparative Balance SheetDecember $31,2022$ and $202320232022$Assets$$Current assets:$$Cash$ $13,000$$ $10,000$Accounts receivable$17,50013,500$Merchandise inventory$9,50015,000$Prepaid expenses$25,00011,000$Total current assets$ $65,000$$ $49,500$Plant and equipment:$$Building $($net$)$$ $15,500$$ $12,000$Land$14,50010,000$Total plant and equipment$ $30,000$$ $22,000$Total assets$ $95,000$$ $71,500$Liabilities$$Current liabilities:$$Accounts payable$ $14,000$$ $8,000$Salaries payable$8,0006,000$Total current liabilities$ $22,000$$ $14,000$Long$-$term liabilities:$$Mortgage note payable$23,00021,500$Total liabilities$ $45,000$$ $35,500$Stockholders$$ Equity$$Common stock$ $22,000$$ $22,000$Retained earnings$28,00014,000$Total stockholders$$ equity$ $50,000$$ $36,000$Total liabilities and stockholders$$ equity$ $95,000$$ $71,500$

Calculate the total debt to total assets 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.