LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 23,800 $ 18,600 Sales returns and allowances 1,000 100 Net sales $ 22,800 $ 18,500 Cost of merchandise (goods) sold 10,800 7,200 Gross profit $ 12,000 $ 11,300 Operating expenses: Depreciation $ 1,180 $ 840 Selling and administrative 5,800 4,400 Research 1,030 740 Miscellaneous 840 540 Total operating expenses $ 8,850 $ 6,520 Income before interest and taxes $ 3,150 $ 4,780 Interest expense 1,040 740 Income before taxes $ 2,110 $ 4,040 Provision for taxes 844 1,616 Net income $ 1,266 $ 2,424 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 11,100 $ 8,100 Accounts receivable 15,600 11,600 Merchandise inventory 7,600 13,100 Prepaid expenses 23,100 9,100 Total current assets $ 57,400 $ 41,900 Plant and equipment: Building (net) $ 13,600 $ 10,200 Land 12,600 8,100 Total plant and equipment $ 26,200 $ 18,300 Total assets $ 83,600 $ 60,200 Liabilities Current liabilities: Accounts payable $ 12,100 $ 6,100 Salaries payable 6,100 4,100 Total current liabilities $ 18,200 $ 10,200 Long-term liabilities: Mortgage note payable 21,100 19,600 Total liabilities $ 39,300 $ 29,800 Stockholders’ Equity Common stock $ 20,100 $ 20,100 Retained earnings 24,200 10,300 Total stockholders’ equity $ 44,300 $ 30,400 Total liabilities and stockholders’ equity $ 83,600 $ 60,200 Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.) (FOR 2018 AND 2017)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  LOGIC COMPANY  
  Comparative Income Statement  
  For Years Ended December 31, 2017 and 2018  
               
    2018 2017
  Gross sales $ 23,800   $ 18,600  
  Sales returns and allowances   1,000     100  
  Net sales $ 22,800   $ 18,500  
  Cost of merchandise (goods) sold   10,800     7,200  
  Gross profit $ 12,000   $ 11,300  
  Operating expenses:            
  Depreciation $ 1,180   $ 840  
  Selling and administrative   5,800     4,400  
  Research   1,030     740  
  Miscellaneous   840     540  
  Total operating expenses $ 8,850   $ 6,520  
  Income before interest and taxes $ 3,150   $ 4,780  
  Interest expense   1,040     740  
  Income before taxes $ 2,110   $ 4,040  
  Provision for taxes   844     1,616  
  Net income $ 1,266   $ 2,424  
 

 

  LOGIC COMPANY  
  Comparative Balance Sheet  
  December 31, 2017 and 2018  
           
    2018 2017
  Assets            
  Current assets:            
  Cash $ 11,100   $ 8,100  
  Accounts receivable   15,600     11,600  
  Merchandise inventory   7,600     13,100  
  Prepaid expenses   23,100     9,100  
  Total current assets $ 57,400   $ 41,900  
  Plant and equipment:            
  Building (net) $ 13,600   $ 10,200  
  Land   12,600     8,100  
  Total plant and equipment $ 26,200   $ 18,300  
  Total assets $ 83,600   $ 60,200  
  Liabilities            
  Current liabilities:            
  Accounts payable $ 12,100   $ 6,100  
  Salaries payable   6,100     4,100  
  Total current liabilities $ 18,200   $ 10,200  
  Long-term liabilities:            
  Mortgage note payable   21,100     19,600  
  Total liabilities $ 39,300   $ 29,800  
  Stockholders’ Equity            
  Common stock $ 20,100   $ 20,100  
  Retained earnings   24,200     10,300  
  Total stockholders’ equity $ 44,300   $ 30,400  
  Total liabilities and stockholders’ equity $ 83,600   $ 60,200  
 

 

Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)
 

(FOR 2018 AND 2017)
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