LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2017 2018 $23,000 $18,000 Gross sales Sales returns and allowances 800 100 Net sales $22,200 $17,900 Cost of merchandise (goods) sold 11,000 7,600 Gross profit $11,200 $10,300 Operating expenses: Depreciation $ 1,100 $ 800 5,200 4,000 Selling and administrative Research 950 700 Miscellaneous 760 500 Total operating expenses $8,010 $ 6,000 Income before interest and taxes $3,190 $4,300 968 Interest expense 700 Income before taxes $2,230 $3,600 892 1,440 Provision for taxes Net income $1,338 $2,160 2018 2017 Current assets: Cash $11,500 $ 8,500 Accounts receivable 16,000 12,000 Merchandise inventory 8,000 13,500 Prepaid expenses 23,500 9,500 Total current assets $59,000 $43,500 Plant and equipment: Building (net) $14,000 $10,500 Land 13,000 8,500 Total plant and equipment $27,000 $19,000 Total assets $86,000 $62,500 Current liabilities: Accounts payable $12,500 $6,500 6,500 Salaries payable 4,500 Total current liabilities $19,000 $11,000 Long-term liabilities: Mortgage note payable 21,500 20,000 Total liabilities $40,500 $31,000 Stockholders' Equity Common stock Retained earnings $20,500 $20,500 25,000 11,000 $45,500 $31,500 Total stockholders' equity Total liabilities and stockholders' equity $86,000 $62,500 Calculate the return on equity (after tax) ratio. (Round your answers to the nearest hundredth.) 2018 2017 Return on equity LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 Assets Liabilities