On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	22,300
Accounts Receivable		37,500
Inventory		32,000
Land		64,600
Allowance for Uncollectible Accounts					3,500
Accounts Payable					31,400
Notes Payable (9%, due in 3 years)					32,000
Common Stock					58,000
Retained Earnings					31,500
Totals	$	156,400		$	156,400

The $32,000 beginning balance of inventory consists of 320 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January		3		Purchase 1,100 units for $117,700 on account ($107 each).
January		8		Purchase 1,200 units for $134,400 on account ($112 each).
January		12		Purchase 1,300 units for $152,100 on account ($117 each).
January		15		Return 110 of the units purchased on January 12 because of defects.
January		19		Sell 3,700 units on account for $555,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January		22		Receive $533,000 from customers on accounts receivable.
January		24		Pay $363,000 to inventory suppliers on accounts payable.
January		27		Write off accounts receivable as uncollectible, $2,700.
January		31		Pay cash for salaries during January, $116,000.

The following information is available on January 31, 2018. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. At the end of January, $4,200 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $12,500. Jounral Entries: 1.)Purchase 1,100 units for $117,700 on account ($107 each). 2.) Purchase 1,200 units for $134,400 on account ($112 each). 3.) Purchase 1,300 units for $152,100 on account ($117 each). 4.) Return 110 of the units purchased on January 12 because of defects. 5.) Sell 3,700 units on account for $555,000. 6.) Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. 7.) Receive $533,000 from customers on accounts receivable. 8.) Pay $363,000 to inventory suppliers on accounts payable. 9.) Write off accounts receivable as uncollectible, $2,700. 10.) Pay cash for salaries during January, $116,000. 11.) Record the adjusting entry for inventory. 12.) Record the adjusting entry for uncollectible accounts. 13.) Record the adjusting entry for interest. 14.) Record the adjusting entry for income tax. 15.) Record the closing entry for revenue. 16.) Record the closing entry for expenses. 17.) Record the closing entry for income summary.

Prepare a multiple-step income statement for the period ended January 31, 2018

Prepare a classified balance sheet as of January 31, 2018.

Using the information from the requirements above, complete the 'Analysis'. (Enter your Inventory Turnover ratio and gross profit ratio value in one decimal place.)

Analyze how well Big Blast Fireworks manages its inventory:
(a) Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for the month of January is 18.6 times, is the company managing its inventory more or less efficiently than other companies in the same industry?
The inventory turnover ratio is:			times
The company managing its inventory more efficiently. (True or False)
(b) Calculate the gross profit ratio for the month of January. If the average gross profit ratio is 33%, is the company more or less profitable per dollar of sales than other companies in the same industry?
The gross profit ratio is:			%
Is the company more or less profitable per dollar of sales?
(c) Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks business strategy? Is the companys strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?
Based on the inventory turnover ratio and the gross profit ratio, Big Blast Fireworks business strategy appears to be selling a