On January $1,2024,$ the general ledger of ACME Fireworks includes the following account balances:

Accounts Debit Credit

Cash $$27,000$

Accounts Receivable $50,000$

Allowance for Uncollectible Accounts $$6,100$

Inventory $21,900$

Land $65,000$

Equipment $24,500$

Accumulated Depreciation $3,400$

Accounts Payable $30,400$

Notes Payable $(6\%,$ due April $1,2025)69,000$

Common Stock $54,000$

Retained Earnings $25,500$

Totals $$188,400$ $$188,400$

During January $2024,$ the following transactions occur:

January $2$ Sold gift cards totaling $$11,800.$ The cards are redeemable for merchandise within one year of the purchase date.

January $6$ Purchase additional inventory on account, $$166,000.$ ACME uses the perpetual inventory system.

January $15$ Firework sales for the first half of the month total $$154,000.$ All of these sales are on account. The cost of the units sold is $$83,300.$

January $23$ Receive $$127,300$ from customers on accounts receivable.

January $25$ Pay $$109,000$ to inventory suppliers on accounts payable.

January $28$ Write off accounts receivable as uncollectible, $$6,700.$

January $30$ Firework sales for the second half of the month total $$162,000.$ Sales include $$10,000$ for cash and $$152,000$ on account. The cost of the units sold is $$89,000.$

January $31$ Pay cash for monthly salaries, $$53,900.$

The following information is available on January $31.$

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 $$5,300$ and a two$-$year service life.

The company records an adjusting entry for $$19,200$ for estimated future uncollectible accounts.

The company has accrued interest on notes payable for January.

The company has accrued income taxes at the end of January of $$14,900.$

By the end of January, $$4,900$ of the gift cards sold on January $2$ have been redeemed $($ignore cost of goods sold$).$ Record each of the transactions listed above in the 'General Journal' tab $($these are shown as items $1$ to $10)$ assuming a FIFO perpetual inventory system. The transactions on January $15$ and January $30$ require two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

$2.$

Record adjusting entries on January $31.$ in the 'General Journal' tab $($these are shown as items $11$ to $15).$

$3.$

Review the adjusted 'Trial Balance' as of January $31,2024,$ in the 'Trial Balance' tab.

$4.$

Prepare a multiple$-$step income statement for the period ended January $31,2024,$ in the 'Income Statement' tab.

$5.$

Prepare a classified balance sheet as of January $31,2024,$ in the 'Balance Sheet' tab.

$6.$

Record the closing revenue and expense entries in the 'General Journal' tab $($these are shown as items $16$ and $17).$

$7.$

Using the information from the requirements above, complete the 'Analysis' tab. A$)$ calulate the current ratio at the end of january if the average current ratio for the industry is $1\mathrm{.}8.$ is ACME more or less liquid than the industry average. The current ratio is:$\_\_\_\_$ B$)$ calculate the acid test ratio at the end of january if the average acid test ratio for the industry is $1\mathrm{.}5.$ is ACME fireworks more or less likely to have difficulty paying its currently maturing debts. The acid$-$test ratio is$\_\_\_\_$C$)$ assume the notes payable were due on april $12024$ rather than april $12025,$ caluclate the revised current ratio at the end of january and indicate whether the revised ratio would decrease or increase. The revised current ratio is:$\_\_\_\_$