On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	26,800
Accounts Receivable		49,600
Allowance for Uncollectible Accounts					$	5,900
Inventory		21,700
Land		63,000
Equipment		23,500
Accumulated Depreciation						3,200
Accounts Payable						30,200
Notes Payable (6%, due April 1, 2022)						67,000
Common Stock						52,000
Retained Earnings						26,300
Totals	$	184,600			$	184,600

During January 2021, the following transactions occur:

January		2		Sold gift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase date.
January		6		Purchase additional inventory on account, $164,000.
January		15		Firework sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300.
January		23		Receive $127,100 from customers on accounts receivable.
January		25		Pay $107,000 to inventory suppliers on accounts payable.
January		28		Write off accounts receivable as uncollectible, $6,500.
January		30		Firework sales for the second half of the month total $160,000. Sales include $11,000 for cash and $149,000 on account. The cost of the units sold is $88,000.
January		31		Pay cash for monthly salaries, $53,700.

7. Analyze the following for ACME Fireworks

Requirement 1:

a-1. Calculate the current ratio at the end of January.

a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?

Requirement 2:

b-1. Calculate the acid-test ratio at the end of January.

b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)?

Requirement 3:

c-1. Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January.