eBookPrintReferencesCheck my workCheck My Work button is now enabled3Item 8 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 22,600 $ 17,700 Sales returns and allowances 1,000 100 Net sales $ 21,600 $ 17,600 Cost of merchandise (goods) sold 11,100 7,800 Gross profit $ 10,500 $ 9,800 Operating expenses: Depreciation $ 1,060 $ 780 Selling and administrative 4,900 3,800 Research 910 680 Miscellaneous 720 480 Total operating expenses $ 7,590 $ 5,740 Income before interest and taxes $ 2,910 $ 4,060 Interest expense 920 680 Income before taxes $ 1,990 $ 3,380 Provision for taxes 796 1,352 Net income $ 1,194 $ 2,028 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 11,700 $ 8,900 Accounts receivable 16,200 12,200 Merchandise inventory 8,200 13,700 Prepaid expenses 23,700 9,700 Total current assets $ 59,800 $ 44,500 Plant and equipment: Building (net) $ 14,200 $ 10,700 Land 13,200 8,700 Total plant and equipment $ 27,400 $ 19,400 Total assets $ 87,200 $ 63,900 Liabilities Current liabilities: Accounts payable $ 12,700 $ 7,000 Salaries payable 6,800 4,700 Total current liabilities $ 19,500 $ 11,700 Long-term liabilities: Mortgage note payable 21,700 20,200 Total liabilities $ 41,200 $ 31,900 Stockholders Equity Common stock $ 20,700 $ 20,800 Retained earnings 25,300 11,200 Total stockholders equity $ 46,000 $ 32,000 Total liabilities and stockholders equity $ 87,200 $ 63,900 Calculate the acid test ratio. (Round your answers to the nearest hundredth.)

Calculate the acid test ratio. (Round your answers to the nearest hundredth.)