newconnect.mheducation.com/flow/connect.html Official Site of the Aleks practice On January 1, 2021, the general ledger of INT Hreworks includes the following account balances: $ 60,00 28, 2 Allowance for collectible Account Inventory Notes Receivable (53, due in 53, see 37, 31, 2ee 171.eee Accounts Payable Retained Earnings Totals During January 2021, the following transactions occur January 1Purchase i t for $21. le. The company January 4 Pay cash on accounts payable, sli, 10e. January 15 Receive cash on accounts receivable, $23,00 January 19 Pay cash for salaries, 331, cea. na 2 Pay cash for January utilities, 518.10. sary Sales for January total 1236, . All of these sales o count. The cost of the units sold $123.00 Information for adjusting entries .. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $4500 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3 of these accounts are estimated to be uncollectible Hint Use the January 31 accounts receivable balance calculated in the general ledge) c. Accrued Interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34 200. e. Accrued income taxes at the end of January ore $10.600 Exercise 7-21 Part 7 7. Analyze how well TNT Fireworks manages its assets: Requirement 1: ences 0-1. Calculate the return on assets ratio for the month of January Return on Assets Ratio Choose Numerator Choose Denominator Return on Assets Ratio Return on assets 6-2. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry? More profitable w Less profitable Requirement 2: b-1. Calculate the profit margin for the month of January Profit Margin Choose Numerator Choose Denominator Profit Margin Proft Margin b-2. If the Industry average profit margin is 5%, is the company more or less efficient at converting sales to profit than other companies in the same industry? More efficient Less efficient Requirement 3 c. 1. Calculate the asset tumover ratio for the month of January Asset Turnover Ratio Choose Numerator Choose Denominator = Asset Turnover Ratio newconnect.mheducation.com/flow/connect.html Official Site of the Aleks practice On January 1, 2021, the general ledger of INT Hreworks includes the following account balances: $ 60,00 28, 2 Allowance for collectible Account Inventory Notes Receivable (53, due in 53, see 37, 31, 2ee 171.eee Accounts Payable Retained Earnings Totals During January 2021, the following transactions occur January 1Purchase i t for $21. le. The company January 4 Pay cash on accounts payable, sli, 10e. January 15 Receive cash on accounts receivable, $23,00 January 19 Pay cash for salaries, 331, cea. na 2 Pay cash for January utilities, 518.10. sary Sales for January total 1236, . All of these sales o count. The cost of the units sold $123.00 Information for adjusting entries .. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $4500 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3 of these accounts are estimated to be uncollectible Hint Use the January 31 accounts receivable balance calculated in the general ledge) c. Accrued Interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34 200. e. Accrued income taxes at the end of January ore $10.600 Exercise 7-21 Part 7 7. Analyze how well TNT Fireworks manages its assets: Requirement 1: ences 0-1. Calculate the return on assets ratio for the month of January Return on Assets Ratio Choose Numerator Choose Denominator Return on Assets Ratio Return on assets 6-2. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry? More profitable w Less profitable Requirement 2: b-1. Calculate the profit margin for the month of January Profit Margin Choose Numerator Choose Denominator Profit Margin Proft Margin b-2. If the Industry average profit margin is 5%, is the company more or less efficient at converting sales to profit than other companies in the same industry? More efficient Less efficient Requirement 3 c. 1. Calculate the asset tumover ratio for the month of January Asset Turnover Ratio Choose Numerator Choose Denominator = Asset Turnover Ratio