Accounts	Debit			Credit
Cash	$	22,100
Accounts Receivable		37,000
Inventory		31,000
Land		63,100
Allowance for Uncollectible Accounts					3,300
Accounts Payable					31,900
Notes Payable (6%, due in 3 years)					31,000
Common Stock					57,000
Retained Earnings					30,000
Totals	$	153,200		$	153,200

The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January 3	Purchase 1,000 units for $106,000 on account ($106 each).
January 8	Purchase 1,100 units for $122,100 on account ($111 each).
January 12	Purchase 1,200 units for $139,200 on account ($116 each).
January 15	Return 105 of the units purchased on January 12 because of defects.
January 19	Sell 3,400 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22	Receive $489,000 from customers on accounts receivable.
January 24	Pay $319,000 to inventory suppliers on accounts payable.
January 27	Write off accounts receivable as uncollectible, $2,600.
January 31	Pay cash for salaries during January, $115,000.

The following information is available on January 31, 2018.

A. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.

B. At the end of January, $4,100 of accounts receivable are past due, and the company estimates that 45% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. Apparently $6110 isn't the answer.

C. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.

D. Accrued income taxes at the end of January are $12,400.

E. Enter your Inventory Turnover ratio and gross profit ratio value in one decimal place.

(Neither ratio worked for me)

Analyze how well Big Blast Fireworks manages its inventory:
(a) Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for the month of January is 18 times, is the company managing its inventory more or less efficiently than other companies in the same industry?
The inventory turnover ratio is:		3.3	times
The company managing its inventory more efficiently. (True or False)		False
(b) Calculate the gross profit ratio for the month of January. If the average gross profit ratio is 34%, is the company more or less profitable per dollar of sales than other companies in the same industry?
The gross profit ratio is:		26.0	%
Is the company more or less profitable per dollar of sales?		Less
(c) Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks business strategy? Is the companys strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?
Based on the inventory turnover ratio and the gross profit ratio, Big Blast Fireworks business strategy appears to be selling a		higher volume of less expensive items