On January 1, 2021, the general ledger of TNT Fireworks included the following account balances: Account Title Debits Credits t $ 58,700 25,000 $ 2,200 Cash Accounts receivable Allowance for uncollectible accounts Inventory Notes receivable (5%, due in 2 years) Land Accounts payable Common stock Retained earnings Totals 36,300 12,000 155,000 14.800 220,000 50,000 $287,000 $287,000 During January 2021, the following transactions occurred: Jan. 1 4 8 15 19 28 30 Purchased equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life. Paid cash on accounts payable, $9,500. Purchased additional inventory on account, $82,900. Received cash on accounts receivable, $22,000. Paid cash for salaries, $29,800. Paid cash for January utilities, $16,500. Firework sales for January totaled $220,000. All of these sales were on account. The cost of the units sold was $115,000. Adjusted TNT Fireworks Multiple-Step Income Statement For the year ended January 31, 2021 Sales revenue $ 220,000 Cost of goods sold (115,000) Gross profit Salaries expense 62,400 Utilities expense 16,500 Depreciation expense 300 Bad debt expense 5,900 $ 105,000 Total operating expenses Operating income Interest revenue 85,100 19,900 | 50 Income before taxes Income tax expense Net income 19,950 9,000 10.950 $ Based on your selection. Adjusted TNT Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current assets Current liabilities Cash $ $ 88.200 Accounts receivable 5.400 223,000 (8,100) Accounts payable Salaries payable Income tax payable 32,600 Allowance for uncollectible accounts 9,000 Inventory Interest receivable 4,200 50 Total current liabilities 129,800 Total current assets 224 550 Total liabilities 129.800 Noncurrent assets: Stockholders' Equity Land 155,000 Common stock 220.000 19,500 Retained earnings 60,950 Equipment Accumulated depreciation Notes receivable (300) 0 12,000 0 0 Total stockholders equity Total liabilities & stockholders equity Total assets 280.950 410.750 $ 410.750 $ Income Statement Analysis > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the Analysis'. (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) True (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) True (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) True (Balance Sheet