Do current Ratio at the end of Jan, acid-test ratio, and current ratio

Exercise 8-19 (Algo) Complete the accounting cycle (LO8-1,8-2, 8-4, 8-6) [The following information applies to the questions displayed below) On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $26,500 Accounts Receivable 49,000 Allowance for Uncollectible Accounts $5,600 Inventory 21,400 Land 60,000 Equipment 22,000 Accumulated Depreciation 2,900 Accounts Payable 29,900 Notes Payable (64, due April 1, 2025) 64,000 Common Stock 49,000 Retained Earnings 27,500 Totals $178,900 $178,900 During January 2024, the following transactions occur: 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. ACME uses the perpetual inventory system. 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. Exercise 8-19 (Algo) Part 7 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? Requirement 2: b-1. Calculate the acid-test ratio at the end of January b-2. If the average acid-test ratio for the industry is 1.50, Is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? Requirement 3: c-1. Assume the notes payable were due on April 1, 2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 ReqC1 Reg C2 Calculate the current ratio at the end of January Current Ratio Choose Numerator Choose Denominator = Current Assets + Current Liabilities Current Ratio = Current Ratio REGA Reg A2 > Exercise 8-19 (Algo) Part 7 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? Requirement 2: b-1. Calculate the acid-test ratio at the end of January. b-2. If the average acid-test ratio for the industry is 1.50, Is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? Requirement 3: c-1. Assume the notes payable were due on April 1, 2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. Complete this question by entering your answers in the tabs below. ReqC1 Reg C2 Reg A1 Reg A2 Reg B1 Reg B2 Calculate the acid-test ratio at the end of January Acid-Test Ratio Choose Numerator Choose Denominator Quick Assets Current Liabilities Acid-Test Ratio Acid-Test Ratio Exercise 8-19 (Algo) Part 7 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January a-2. If the average current ratio for the industry is 1.80, Is ACME Fireworks more or less liquid than the industry average? Requirement 2: b-1. Calculate the acid-test ratio at the end of January b-2. If the average acid-test ratio for the industry is 1.50, Is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? Requirement 3: c-1. Assume the notes payable were due on April 1, 2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. Complete this question by entering your answers in the tabs below. Req B2 Reg C1 Reg C2 Req Al Reg A2 Req B1 Assume the notes payable were due on April 1, 2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January Current Ratio Choose Denominator Choose Numerator Current Assets Current Liabilities Current Ratio Current Ratio 0