Calculate the following ratios for the month of January. Include the written formula in words, as well as your calculations and final answers. Round your final answer to 2 decimal points.

(a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at January 31, 2021, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. Office supplies at January 31 total $500. Insurance coverage expires on October 31, 2021. Annual depreciation on the equipment is $900. Interest of $55 has accrued on the note payable. (d) Prepare a multiple-step Income Statement and an Owner's Equity Statement for January and a classified Balance Sheet at the end of January. Prepare and post adjusting and closing entries. (f) Prepare a Post-Closing Trial Balance, and determine whether the subsidiary ledgers agree with the control accounts in the General Ledger. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of January 3. Gross Profit Rate 4. Working Capital Sunshine Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sunshine are indicated in the working papers. Below are a series of transactions for Sunshine Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 37% of the sales price. Jan.3 Sell merchandise on account to S. Shortcake $3,100, invoice no. 506, and to H. Pie $1,800, invoice no. 507. 5 Purchase merchandise from P. Pudding $6,000 and O. Blossom $2,200, terms 1/30. 7 Receive checks from A. Dumplin' $4,000 and R. Tart $7,500 after discount period has lapsed. 8 Pay freight on merchandise purchased $250. 9 Send checks to T. Honey for $9,000 less 2% cash discount, and to L. Meringue for $11,000 less 1% cash discount 9 Issue credit of $700 to H. Pie for merchandise returned. 10 Summary daily cash sales total $15,500 11 Sell merchandise on account to B. Muffin $1,600, invoice no. 508, and to A. Dumplin' $900, invoice no. 509 12 Pay rent of $3,000 for January. 13 Receive payment in full from S. Shortcake and H. Pie less cash discounts. 15 Withdrawal of $900 cash by J. Apricot for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from L. Meringue $15,000, terms 1/10, 1/30; T. Honey $14,200, terms 2/10, 1/30; and P. Pudding $1,500, terms 1/30. 17 Pay $600 cash for office supplies. 18 Return $400 of merchandise to T. Honey and receive credit. 20 Summary daily cash sales total $20,100. 21 Issue $17,000 note, maturing in 90 days, to B. Cookie in payment of balance due. 21 Receive payment in full from A Dumplin' less cash discount. 22 Sell merchandise on account to S. Shortcake $2,700, invoice no. 510, and to B. Muffin $3,300, invoice no. 511. 22 Post all entries to the subsidiary ledgers. 23 Send checks to L. Meringue and T. Honey in full payment less cash discounts. 25 Sell merchandise on account to R. Tart $3,500, invoice no. 512, and to H. Pie $6.100, invoice no. 513. 27 Purchase merchandise from L. Meringue $14,500, terms 1/10, 1/30; O. Blossom $1,200, terms 1/30; and P. Pudding $5,400, terms n/30. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Summary daily cash sales total $21,300. 31 Pay salaries and wages of $9.200. (continued) Ratio Analysis Calculate the following ratios for the month of January. Include the written formula in words, as well as your calculations and final answers. Round your final answer to 2 decimal points. Be sure to show your work! 1. Inventory Turnover 2. Days in Inventory (note the time period covered by this month): 3. Gross Profit Rate 4. Working Capital (a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at January 31, 2021, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. Office supplies at January 31 total $500. Insurance coverage expires on October 31, 2021. Annual depreciation on the equipment is $900. Interest of $55 has accrued on the note payable. (d) Prepare a multiple-step Income Statement and an Owner's Equity Statement for January and a classified Balance Sheet at the end of January. Prepare and post adjusting and closing entries. (f) Prepare a Post-Closing Trial Balance, and determine whether the subsidiary ledgers agree with the control accounts in the General Ledger. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of January 3. Gross Profit Rate 4. Working Capital Sunshine Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sunshine are indicated in the working papers. Below are a series of transactions for Sunshine Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 37% of the sales price. Jan.3 Sell merchandise on account to S. Shortcake $3,100, invoice no. 506, and to H. Pie $1,800, invoice no. 507. 5 Purchase merchandise from P. Pudding $6,000 and O. Blossom $2,200, terms 1/30. 7 Receive checks from A. Dumplin' $4,000 and R. Tart $7,500 after discount period has lapsed. 8 Pay freight on merchandise purchased $250. 9 Send checks to T. Honey for $9,000 less 2% cash discount, and to L. Meringue for $11,000 less 1% cash discount 9 Issue credit of $700 to H. Pie for merchandise returned. 10 Summary daily cash sales total $15,500 11 Sell merchandise on account to B. Muffin $1,600, invoice no. 508, and to A. Dumplin' $900, invoice no. 509 12 Pay rent of $3,000 for January. 13 Receive payment in full from S. Shortcake and H. Pie less cash discounts. 15 Withdrawal of $900 cash by J. Apricot for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from L. Meringue $15,000, terms 1/10, 1/30; T. Honey $14,200, terms 2/10, 1/30; and P. Pudding $1,500, terms 1/30. 17 Pay $600 cash for office supplies. 18 Return $400 of merchandise to T. Honey and receive credit. 20 Summary daily cash sales total $20,100. 21 Issue $17,000 note, maturing in 90 days, to B. Cookie in payment of balance due. 21 Receive payment in full from A Dumplin' less cash discount. 22 Sell merchandise on account to S. Shortcake $2,700, invoice no. 510, and to B. Muffin $3,300, invoice no. 511. 22 Post all entries to the subsidiary ledgers. 23 Send checks to L. Meringue and T. Honey in full payment less cash discounts. 25 Sell merchandise on account to R. Tart $3,500, invoice no. 512, and to H. Pie $6.100, invoice no. 513. 27 Purchase merchandise from L. Meringue $14,500, terms 1/10, 1/30; O. Blossom $1,200, terms 1/30; and P. Pudding $5,400, terms n/30. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Summary daily cash sales total $21,300. 31 Pay salaries and wages of $9.200. (continued) Ratio Analysis Calculate the following ratios for the month of January. Include the written formula in words, as well as your calculations and final answers. Round your final answer to 2 decimal points. Be sure to show your work! 1. Inventory Turnover 2. Days in Inventory (note the time period covered by this month): 3. Gross Profit Rate 4. Working Capital