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

Accounts	Debit				Credit
Cash	$	58,700
Accounts Receivable		25,000
Allowance for Uncollectible Accounts					$	2,200
Inventory		36,300
Notes Receivable (5%, due in 2 years)		12,000
Land		155,000
Accounts Payable						14,800
Common Stock						220,000
Retained Earnings						50,000
Totals	$	287,000			$	287,000

During January 2021, the following transactions occur:

January		1		Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life.
January		4		Pay cash on accounts payable, $9,500.
January		8		Purchase additional inventory on account, $82,900.
January		15		Receive cash on accounts receivable, $22,000.
January		19		Pay cash for salaries, $29,800.
January		28		Pay cash for January utilities, $16,500.
January		30		Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $3,000 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.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $32,600.
5. Accrued income taxes at the end of January are $9,000.

7. Analyze how well TNT Fireworks manages its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January. Return on Assets Ratio Choose Numerator : Choose Denominator = Return on Assets Ratio . = Return on assets - a-2. 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? O More profitable O Less profitable Requirement 2: b-1. Calculate the profit margin for the month of January. If the industry average profit margin is 4%. Profit Margin Choose Numerator Choose Denominator Profit Margin Profit Margin = b-2. 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? O More efficient O Less efficient Requirement 3: C-1. Calculate the asset turnover ratio for the month of January. If the industry average asset turnover is 0.5 times per month. Asset Turnover Ratio Choose Numerator Choose Denominator Asset Turnover Ratio = Asset Turnover times c-2. 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? O More efficient O Less efficient