5 .) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,500 49,000 $ 5,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 21,400 60,000 22,000 2,900 29,900 64,000 49,000 27,500 $178,900 $178,900 During January 2021, the following transactions occurs January 2 Sold gift cards totaling $10,800. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $161,000. January 15 Firework sales for the first half of the month total $149,000. All of these sales are on account. The cost of the units sold is $80,800. January 23 Receive $126,800 from customers on accounts receivable. January 25 Pay $104,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,200. January 30 Firework sales for the second half of the month total $157,000. Sales include $15,000 for cash and $142,000 on account. The cost of the units sold is $86,500. January 31 Pay cash for monthly salaries, $53,400. 7 Analyze the following for ACME Fireworks 7. Analyze the following for ACME Fireworks Requirement 1: 0-1. Calculate the current ratio at the end of January Current Ratio Choose Numerator + Choose Denominator 11 Current Ratio 11 Current Ratio 11 a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? More liquid Less liquid Requirement 2: b.1. Calculate the acid-test ratio at the end of January Marec 1 Required information Requirement 2: b-1. Calculate the acid-test ratio at the end of January. Acid-test Ratio Choose Numerator Choose Denominator = Acid-test Ratio 11 Acid-test Ratio