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

Accounts	Debit			Credit
Cash	$	25,100
Accounts Receivable		44,500
Allowance for Uncollectible Accounts				$	3,500
Inventory		46,000
Land		85,600
Accounts Payable					27,200
Notes Payable (9%, due in 3 years)					46,000
Common Stock					72,000
Retained Earnings					52,500
Totals	$	201,200		$	201,200

The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions:

January		3		Purchase 1,450 units for $158,050 on account ($109 each).
January		8		Purchase 1,550 units for $176,700 on account ($114 each).
January		12		Purchase 1,650 units for $196,350 on account ($119 each).
January		15		Return 180 of the units purchased on January 12 because of defects.
January		19		Sell 4,800 units on account for $720,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January		22		Receive $705,000 from customers on accounts receivable.
January		24		Pay $500,000 to inventory suppliers on accounts payable.
January		27		Write off accounts receivable as uncollectible, $2,500.
January		31		Pay cash for salaries during January, $135,000.

The following information is available on January 31, 2021.

At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.

The company estimates future uncollectible accounts. The company determines $5,600 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

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 $13,900

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 15 times, is the company managing its inventory more or less efficiently than other companies in the same industry?

(b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 28%, is the company more or less profitable per dollar of sales than other companies in the same industry?