LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 19,600   $ 15,450     Sales returns and allowances   1,000     100     Net sales $ 18,600   $ 15,350     Cost of merchandise (goods) sold   11,850     8,850     Gross profit $ 6,750   $ 6,500     Operating expenses:               Depreciation $ 760   $ 630     Selling and administrative   2,650     2,300     Research   610     530     Miscellaneous   420     330     Total operating expenses $ 4,440   $ 3,790     Income before interest and taxes $ 2,310   $ 2,710     Interest expense   620     530     Income before taxes $ 1,690   $ 2,180     Provision for taxes   676     872     Net income $ 1,014   $ 1,308         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 12,300   $ 9,300     Accounts receivable   16,800     12,800     Merchandise inventory   8,800     14,300     Prepaid expenses   24,300     10,300     Total current assets $ 62,200   $ 46,700     Plant and equipment:               Building (net) $ 14,800   $ 11,300     Land   13,800     9,300     Total plant and equipment $ 28,600   $ 20,600     Total assets $ 90,800   $ 67,300     Liabilities               Current liabilities:               Accounts payable $ 13,300   $ 7,500     Salaries payable   7,300     5,300     Total current liabilities $ 20,600   $ 12,800     Long-term liabilities:               Mortgage note payable   22,300     20,800     Total liabilities $ 42,900   $ 33,600     Stockholders’ Equity               Common stock $ 21,500   $ 21,200     Retained earnings   26,400     12,500     Total stockholders’ equity $ 47,900   $ 33,700     Total liabilities and stockholders’ equity $ 90,800   $ 67,300       Calculate the asset turnover ratio. (Round your answers to the nearest hundredth.)

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 $ 19,600   $ 15,450  
  Sales returns and allowances   1,000     100  
  Net sales $ 18,600   $ 15,350  
  Cost of merchandise (goods) sold   11,850     8,850  
  Gross profit $ 6,750   $ 6,500  
  Operating expenses:            
  Depreciation $ 760   $ 630  
  Selling and administrative   2,650     2,300  
  Research   610     530  
  Miscellaneous   420     330  
  Total operating expenses $ 4,440   $ 3,790  
  Income before interest and taxes $ 2,310   $ 2,710  
  Interest expense   620     530  
  Income before taxes $ 1,690   $ 2,180  
  Provision for taxes   676     872  
  Net income $ 1,014   $ 1,308  
 

 

  LOGIC COMPANY  
  Comparative Balance Sheet  
  December 31, 2017 and 2018  
           
    2018 2017
  Assets            
  Current assets:            
  Cash $ 12,300   $ 9,300  
  Accounts receivable   16,800     12,800  
  Merchandise inventory   8,800     14,300  
  Prepaid expenses   24,300     10,300  
  Total current assets $ 62,200   $ 46,700  
  Plant and equipment:            
  Building (net) $ 14,800   $ 11,300  
  Land   13,800     9,300  
  Total plant and equipment $ 28,600   $ 20,600  
  Total assets $ 90,800   $ 67,300  
  Liabilities            
  Current liabilities:            
  Accounts payable $ 13,300   $ 7,500  
  Salaries payable   7,300     5,300  
  Total current liabilities $ 20,600   $ 12,800  
  Long-term liabilities:            
  Mortgage note payable   22,300     20,800  
  Total liabilities $ 42,900   $ 33,600  
  Stockholders’ Equity            
  Common stock $ 21,500   $ 21,200  
  Retained earnings   26,400     12,500  
  Total stockholders’ equity $ 47,900   $ 33,700  
  Total liabilities and stockholders’ equity $ 90,800   $ 67,300  
 

 

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

 
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