On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Credit Debit $ 22,900 39,000 $ 4, 100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (12%, due in 3 years) Common Stock Retained Earnings Totals 35,000 69, 100 29,900 35,000 61,000 36,000 $ 166,000 $166, 000 The $35,000 beginning balance of inventory consists of 350 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,400 units for $154,000 on account ($110 each). January 8 Purchase 1,500 units for $172,500 on account ($115 each). January 12 Purchase 1,600 units for $192,000 on account ($120 each). January 15 Return 125 of the units purchased on January 12 because of defects. January 19 Sell 4, 600 units on account for $690,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $665, 000 from customers on accounts receivable. January 24 Pay $495,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,000. January 31 Pay cash for salaries during January, $119,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,500 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,800. Answer is not complete. General Journal Requirement General Ledger Income Trial Balance Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal required" in the first account field.) Account Title Credit No 1 Date Jan 03 Debit 154,000 Inventory Accounts Payable 154,000 2 Jan 08 172,500 Inventory Accounts Payable 172,500 3 Jan 12 192,000 Inventory Accounts Payable 192,000 4 Jan 15 15,000 Accounts Payable Inventory 15,000 5 Jan 19 690,000 Accounts Receivable Sales Revenue 690,000 09 Jan 19 523,500 Cost of Goods Sold Inventory 523,500 7 Jan 22 665,000 Cash Accounts Receivable 665,000 8 Jan 24 495,000 Accounts Payable Cash 495,000 9 Jan 27 3,000 Allowance for Uncollectible Accounts Accounts Receivable 3,000 10 Jan 31 119,000 Salaries Expense Cash 119,000 11 Jan 31 2,500 Cost of Goods Sold Inventory 2,500 12 Jan 31 2,980 Bad Debt Expense Allowance for Uncollectible Accounts 2.980 13 Jan 31 350 Interest Expense Interest Payable 350 14 Jan 31 12,800 Income Tax Expense Income Taxes Payable 12,800 15 Jan 31 690,000 Sales Revenue Income Tax Expense x 690,000 16 Jan 31 X Cost of Goods Sold Salaries Expense Bad Debt Expense Interest Expense Income Tax Expense 526,000 X 119,000 2,980 X 350 12,800 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Big Blast Fireworks Multiple-Step Income Statement For the year ended January 31, 2021 Gross Profit $ A 0 0 Total Operating Expenses Operating Income 0 Income Before Taxes 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Big Blast Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets Current Liabilities: $ 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 Total Liabilities 0 Total Current Assets Long-term Assets: Stockholders' Equity 0 0 0 Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity 0 0 Total Assets $ Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis' tab. 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 19.3 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 industry average gross profit ratio is 31%, 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 company's 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