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How do I find: the current ratio, acid-test ratio, and gross margin ratio as of January 31? NELSON COMPANY Unadjusted Trial Balance January 31 Debit
How do I find: the current ratio, acid-test ratio, and gross margin ratio as of January 31?
NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 26,750 Merchandise inventory 13,500 Store supplies 6,000 Prepaid insurance 2,300 Store equipment 42,800 Accumulated depreciation- Store equipment $ 17,300 Accounts payable 16,000 Common stock 5,000 Retained earnings 35,000 Dividends 2,050 Sales 115,900 Sales discounts 1,800 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store 0 equipment Sales salaries expense 13,550 Office salaries expense 13,550 Insurance expense 0 Rent expense-Selling space 8,500 Rent expense-office space 8,500 Store supplies expense 0 Advertising expense 9,800 Totals $189,200 $189, 200 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,650. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,700 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.) Current ratio Acid-test ratio Gross margin ratio :1 :1 :1Step by Step Solution
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