On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59, 600 26,800 $ 3,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,200 22,800 164,000 15,700 229,000 62,600 $310,400 $310,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,400. The company estimates a residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $ 22,900. January 19 Pay cash for salaries, $30, 700. January 28 Pay cash for January utilities, $ 17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,500. e. Accrued income taxes at the end of January are $9,900. No General Journal Credit Date Jan 01 Debit 20,400 Equipment Cash 20,400 Jan 04 10,400 Accounts Payable Cash 10,400 3 Jan 08 91,900 Inventory Accounts Payable 91,900 Jan 15 22,900 Cash Accounts Receivable 22,900 Jan 19 30,700 Salaries Expense Cash 30,700 6 Jan 28 17,400 Utilities Expense Cash 17,400 Jan 30 Accounts Receivable 229,000 Sales Revenue 229,000 Jan 30 119,500 Cost of Goods Sold Inventory 119,500 Jan 31 375 Depreciation Expense Accumulated Depreciation 375 10 Jan 31 Bad Debt Expense 5,720 Jan 31 375 Depreciation Expense Accumulated Depreciation 375 Jan 31 5,720 Bad Debt Expense Allowance for Uncollectible Accounts 5,720 Jan 31 95 Interest Receivable Interest Revenue 95 Jan 31 33,500 Salaries Expense Salaries Payable 33,500 Jan 31 9,900 Income Tax Expense Income Tax Payable 9,900 14 Jan 31 Sales Revenue Interest Revenue Retained Earnings 229,000 95 229,095 15 Jan 31 217,095 Retained Earnings Salaries Expense Utilities Expense Cost of Goods Sold Depreciation Expense Bad Debt Expense Income Tax Expense 64,200 17,400 119,500 375 5,720 9,900 icquCCHIC ILIUI DUIUILL DUIULICE JUCLL Journal lury 13 Ledger Statement Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' f will then populate the balances in those accounts from the adjusted trial balance. Post-closing TNT FIREWORKS Multiple-Step Income Statement For the year ended January 31, 2021 Gross profit Total operating expenses Operating income 0 0. $ 0 VIII Lien Pupuiule Le Dalurilebil LIIULE ULLUUTILS ITUIT LC Uujusllu li IDI UUIUTILE. Post-closing TNT FIREWORKS Balance Sheet January 31, 2021 Liabilities Current Liabilities: Assets Current Assets: Total Current Liabilities Total Current Assets 0 Total Liabilities 0 Noncurrent Assets: Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets 0 $ Using the information from the requirements above, complete the 'Analysis' tab. (Round final answers to 1 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 0.5 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)