Question

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020
	2020		2019
Gross sales	$	19,800	$	15,600
Sales returns and allowances		900		100
Net sales	$	18,900	$	15,500
Cost of merchandise (goods) sold		11,800		8,800
Gross profit	$	7,100	$	6,700
Operating expenses:
Depreciation	$	780	$	640
Selling and administrative		2,800		2,400
Research		630		540
Miscellaneous		440		340
Total operating expenses	$	4,650	$	3,920
Income before interest and taxes	$	2,450	$	2,780
Interest expense		640		540
Income before taxes	$	1,810	$	2,240
Provision for taxes		724		896
Net income	$	1,086	$	1,344

LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020
	2020		2019
Assets
Current assets:
Cash	$	12,300	$	9,400
Accounts receivable		16,900		12,900
Merchandise inventory		8,900		14,400
Prepaid expenses		24,400		10,400
Total current assets	$	62,500	$	47,100
Plant and equipment:
Building (net)	$	14,900	$	11,400
Land		13,900		9,400
Total plant and equipment	$	28,800	$	20,800
Total assets	$	91,300	$	67,900
Liabilities
Current liabilities:
Accounts payable	$	13,400	$	7,400
Salaries payable		7,500		5,400
Total current liabilities	$	20,900	$	12,800
Long-term liabilities:
Mortgage note payable		22,200		20,900
Total liabilities	$	43,100	$	33,700
Stockholders’ Equity
Common stock	$	21,400	$	21,400
Retained earnings		26,800		12,800
Total stockholders’ equity	$	48,200	$	34,200
Total liabilities and stockholders’ equity	$	91,300	$	67,900

Calculate the total debt to total assets ratio. (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.)

	2020	2019
Total debt to total assets ratio

Answer 1