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Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. begin{tabular}{|c|c|c|c|c|} hline & multicolumn{2}{|r|}{ Debit } & multicolumn{2}{|r|}{ Credit }
Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.
\begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|r|}{ Debit } & \multicolumn{2}{|r|}{ Credit } \\ \hline Cash & & $21,200 & & \\ \hline Merchandise inventory & & 12,500 & & \\ \hline Store supplies & & 5,400 & & \\ \hline Prepaid insurance & & 2,100 & & \\ \hline Store equipment & & 42,900 & & \\ \hline Accumulated depreciation-Store equipment & & & & 17,200 \\ \hline Accounts payable & & & & 15,000 \\ \hline Common stock & & & & 4,000 \\ \hline Retained earnings & & & & 29,000 \\ \hline Dividends & & 2,050 & & \\ \hline Sales & & & & 116,400 \\ \hline Sales discounts & & 1,850 & & \\ \hline Sales returns and allowances & & 2,100 & & \\ \hline Cost of goods sold & & 38,000 & & \\ \hline Depreciation expense-Store equipment & & 0 & & \\ \hline Sales salaries expense & & 15,550 & & \\ \hline Office salaries expense & & 15,550 & & \\ \hline Insurance expense & & 0 & & \\ \hline Rent expense-Selling space & & 6,500 & & \\ \hline Rent expense-Office space & & 6,500 & & \\ \hline Store supplies expense & & 0 & & \\ \hline Advertising expense & & 9,400 & & \\ \hline Totals & $ & 181,600 & $ & 181,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|r|}{ Debit } & \multicolumn{2}{|r|}{ Credit } \\ \hline Cash & & $21,200 & & \\ \hline Merchandise inventory & & 12,500 & & \\ \hline Store supplies & & 5,400 & & \\ \hline Prepaid insurance & & 2,100 & & \\ \hline Store equipment & & 42,900 & & \\ \hline Accumulated depreciation-Store equipment & & & & 17,200 \\ \hline Accounts payable & & & & 15,000 \\ \hline Common stock & & & & 4,000 \\ \hline Retained earnings & & & & 29,000 \\ \hline Dividends & & 2,050 & & \\ \hline Sales & & & & 116,400 \\ \hline Sales discounts & & 1,850 & & \\ \hline Sales returns and allowances & & 2,100 & & \\ \hline Cost of goods sold & & 38,000 & & \\ \hline Depreciation expense-Store equipment & & 0 & & \\ \hline Sales salaries expense & & 15,550 & & \\ \hline Office salaries expense & & 15,550 & & \\ \hline Insurance expense & & 0 & & \\ \hline Rent expense-Selling space & & 6,500 & & \\ \hline Rent expense-Office space & & 6,500 & & \\ \hline Store supplies expense & & 0 & & \\ \hline Advertising expense & & 9,400 & & \\ \hline Totals & $ & 181,600 & $ & 181,600 \\ \hline \end{tabular}
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