LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $ 11,000 Land 13,500 9,000 Total plant and equipment $ 28,000 $ 20,000 Total assets $ 89,000 $ 65,500 Liabilities Current liabilities: Accounts payable $ 13,000 $ 7,000 Salaries payable 7,000 5,000 Total current liabilities $ 20,000 $ 12,000 Long-term liabilities: Mortgage note payable 22,000 20,500 Total liabilities $ 42,000 $ 32,500 Stockholders’ Equity Common stock $ 21,000 $ 21,000 Retained earnings 26,000 12,000 Total stockholders’ equity $ 47,000 $ 33,000 Total liabilities and stockholders’ equity $ 89,000 $ 65,500 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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

See similar textbooks

Related questions

Question

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020
	2020	2019
Gross sales	$	19,000	$	15,000
Sales returns and allowances		1,000		100
Net sales	$	18,000	$	14,900
Cost of merchandise (goods) sold		12,000		9,000
Gross profit	$	6,000	$	5,900
Operating expenses:
Depreciation	$	700	$	600
Selling and administrative		2,200		2,000
Research		550		500
Miscellaneous		360		300
Total operating expenses	$	3,810	$	3,400
Income before interest and taxes	$	2,190	$	2,500
Interest expense		560		500
Income before taxes	$	1,630	$	2,000
Provision for taxes		640		800
Net income	$	990	$	1,200

LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020
	2020	2019
Assets
Current assets:
Cash	$	12,000	$	9,000
Accounts receivable		16,500		12,500
Merchandise inventory		8,500		14,000
Prepaid expenses		24,000		10,000
Total current assets	$	61,000	$	45,500
Plant and equipment:
Building (net)	$	14,500	$	11,000
Land		13,500		9,000
Total plant and equipment	$	28,000	$	20,000
Total assets	$	89,000	$	65,500
Liabilities
Current liabilities:
Accounts payable	$	13,000	$	7,000
Salaries payable		7,000		5,000
Total current liabilities	$	20,000	$	12,000
Long-term liabilities:
Mortgage note payable		22,000		20,500
Total liabilities	$	42,000	$	32,500
Stockholders’ Equity
Common stock	$	21,000	$	21,000
Retained earnings		26,000		12,000
Total stockholders’ equity	$	47,000	$	33,000
Total liabilities and stockholders’ equity	$	89,000	$	65,500

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions