Can someone please help me with this question? I am stuck on this. I already did the journal entries.
The $33,000 beginning balance of inventory consists of 330 units, each costing $100. During January 2024 , Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,200 units for $129,600 on account ( $108 each). January 8 Purchase 1,300 units for $146,900 on account ( $113 each). January 12 Purchase 1,400 units for $165,200 on account ( $118 each). January 15 Return 115 of the units purchased on January 12 because of defects. January 19 Sell 4,000 units on account for $600,000 The cost of the units sold is determined using a FIro perpetual inventory system. January 22 Receive $577,000 from customers on accounts receivable. January 24 Pay $407,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,800. January 31 Pay cash for salaries during January, $117,000. The following information is available on January 31,2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,085. for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,600. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal R Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Post-closing BIG BLAST FIREWORKS Multiple-Step Income Statement For the Year Ended January 31, 2024 Trial Balance Balance Sheet > Prepare a classified balance sheet as of January 31, 2024. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 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 19 imes, is the company managing its inventory more or less efficiently than other companies in the same industry? b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 32%, is the company more or less profitable per follar of sales than other companies in the same industry? The gross profit ratio is: s the company more or less profitable per dollar of sales than other companies in the same industry? c) Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks' business strategy? Is the company's trategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items
