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

Accounts	Debit			Credit
Cash	$	60,600
Accounts Receivable		28,800
Inventory		38,200
Notes Receivable (5%, due in 2 years)		34,800
Land		174,000
Allowance for Uncollectible Accounts					4,100
Accounts Payable					16,700
Common Stock					239,000
Retained Earning					76,600
Totals	$	336,400		$	336,400

During January 2018, the following transactions occur:

January 1	Purchase equipment for $21,400. The company estimates a residual value of $3,400 and a five-year service life.
January 4	Pay cash on accounts payable, $11,400.
January 8	Purchase additional inventory on account, $101,900.
January 15	Receive cash on accounts receivable, $23,900
January 19	Pay cash for salaries, $31,700.
January 28	Pay cash for January utilities, $18,400.
January 30	Firework sales for January total $239,000. All of these sales are on account. The cost of the units sold is $124,500.

The following information is available on January 31, 2018.

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

At the end of January, $4,900 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. The note receivable of $34,800 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

Accrued interest revenue on notes receivable for January.

Unpaid salaries at the end of January are $34,500.

Accrued income taxes at the end of January are $10,900

Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.

UnadjustedAdjustedPost-closing

Adjusted

TNT Fireworks
Multiple-Step Income Statement
For the year ended January 31, 2018
Gross profit		$0
Total operating expenses		0
Operating income		0
		0
		$0

Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.

UnadjustedAdjustedPost-closing

Adjusted

TNT Fireworks
Balance Sheet
January 31, 2018
Assets		Liabilities
Current Assets:		Current Liabilities:
		Total Current Liabilities	0
Total Current Assets	0	Total Liabilities	0
Noncurrent Assets:		Stockholders Equity
		Total Stockholders Equity	0
Total Assets	$0	Total Liabilities & Stockholders Equity

Round final answers to one 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)
(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)
(c) Calculate the asset turnover ratio for the month of January. If the industry average asset turnover is 0.4 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:		times
The company is more efficient at producing revenues with its assets. (True or False)