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

Accounts Debit Credit

Cash $ $60,400$

Accounts Receivable $28,400$

Allowance for Uncollectible Accounts $ $3,900$

Inventory $38,000$

Notes Receivable $(5\%,$ due in $2$ years$)32,400$

Land $172,000$

Accounts Payable $16,500$

Common Stock $237,000$

Retained Earnings $73,800$

Totals $ $331,200$ $ $331,200$

During January $2024,$ the following transactions occur:

January $1$ Purchase equUsing the information from the requirements above, complete the 'Analysis' tab. $($Round final answers to $1$ decimal place.$)$

Analyze how well TNT Fireworks manages its assets:

$($a$)$ Calculate the return on assets ratio for the month of January. 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?

The return on assets ratio is: $\%$

The company is more profitable. $($True or False$)$ True

$($b$)$ Calculate the profit margin for the month of January. If the industry average profit margin is $4\%,$ is the company more or less efficient at converting sales to profit than other companies in the same industry?

The profit margin is: $\%$

The company is more efficient at converting sales to profit. $($True or False$)$ True

$($c$)$ Calculate the asset turnover ratio for the month of January. If the industry average asset turnover is $0\mathrm{.}4$ times per month, is the company more or less efficient at producing revenues with its assets than other companies in the same industry?

The asset turnover ratio is: $0\mathrm{.}6$ times

The company is more efficient at producing revenues with its assets. $($True or False$)$ Trueipment for $$21,200.$ The company estimates a residual value of $$3,200$ and a four$-$year service life.

January $4$ Pay cash on accounts payable, $$11,200.$

January $8$ Purchase additional inventory on account, $$99,900.$

January $15$ Receive cash on accounts receivable, $$23,700.$

January $19$ Pay cash for salaries, $$31,500.$

January $28$ Pay cash for January utilities, $$18,200.$

January $30$ Firework sales for January total $$237,000.$ All of these sales are on account. The cost of the units sold is $$123,500.$

The following information is available on January $31,2024.$

Depreciation on the equipment for the month of January is calculated using the straight$-$line method.

The company records an adjusting entry for $$5,560$ for estimated future uncollectible accounts.

The company has accrued interest on notes receivable for January.

Unpaid salaries owed to employees at the end of January are $$34,300.$

The company accrued income taxes at the end of January $$10,700.$