During January 2024, the following transactions occur: January 2 Sold edft cards totaling $9,200. The cards are redeemable for menchandise within pae year of the purchase dute. January 6 Purchase additional inventory on account, $153, eee. ACME uses the perpetual inventory systen. sold is $76,809. Junuary 23 Recelve $126, 909 from custoners on accounts receivable. January 25 Pay $96,090 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,409, The cost of the units sold is $82,598. January 31 Pay cash for monthly salaries, $52,600. The following information is available on January 31. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,600 and a two year service life. b. The company records an adjusting entry for $10,980 for estimated future uncollectible accounts. c. The company has accrued interest on notes payable for January. d. The company has accrued income taxes at the end of January of $13,600. e. By the end of January, $3,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). Using the information from the requirements above, complete the 'Analysis' tab. (Calculate the ratios to the nearest 2 decimal places.) Anatyze the following for ACME Fireworks: less liquid than the industry awnrage? The ciurant ratio as: 210 Using the information from the requirements above, complete the 'Analysis' tab. (Calculate the ratios to the nearest 2 decimal places.) Analyze the following for ACME Fireworks: (a) Calculate the current ratio at the end of January If the average current ratio for the industry is 1.80 , is ACME Fireworks more or less lquid than the industry average? The current ratio is. Is the company more of less liquid than the industry average? 210 (b) Calculate the acid-test ratio at the end of January. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulfy paying its currently maturing debts (compared to the industry average)? The acid-test ratio is: is the company more or less likely to have difficully paying its currently maturing debts? More (c) Assume the notes payable were due on April 1, 2024, rather than April 1, 2025 . Caiculate the revised current ratio at the end of January, and indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (a). The revised current tatio is Indicate whether the rovesed rato would increase, decrease, or remain unchanged compared to your answer in (a). Prov 4 of 5 On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances: During January 2024, the following transactlons occur: January 2 sold ulft cards totaling $9,200. The cords are redeenoble for eerchandise uithia one yuar of the purchase date. January 6. Purchase additional inventory on account, $153,000. AcMl uses the perpetual inventory system. sold is 876,800 . Jehury 21 liecelve $126,000 from custoeers on accounts receivable. Jamuary 25 Pay $9,000 to inventory sopplier's on accounts payable. January 21 Hrite off accounts recelvable as uecallectible, 35,400. the cost of the units sold is $32,500. January 11 Pay cash for monthly salaries, $52,600. The following information is avallable on January 31. a. Depreciation on the equipment for the month of January is calculated using the straight line method. At the time the equipenent was purchased, the company estimated a residual value of $3,600 and a two year seivice life. b. The compary records an adjusting entry for $10,980 for estimated future uncollectible accounts. 4 of 5 Post-closing Depreciation Expense Salaries Expense Prey 4 of 5 \#it Next > Post-closing
