On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $45,000 beginning balance of inventory consists of 450 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,350 units for $145,800 on account ( $108 each). January 8 Purchase 1,450 units for $163,850 on account (\$113 each). January 12 Purchase 1,550 units for $182,900 on account (\$118 each). January 15 Return 175 of the units purchased on January 12 because of defects. January 19 Sell 4,500 units on account for $675, 000 The cost of the units sold is determined using a Fifo perpetual inventory system. January 22 Receive $661, eee from customers on accounts receivable. January 24 Pay $440,806 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,400. January 31 Pay cash for sataries during January, 5134,000 . The following information is available on January 31,2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,255, for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,800. 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. Unadjusted BIG BLAST FIREWORKS income statement Analyals > Analyze how well Big Blast Fireworks manages its inventory. (Enter your inventory turnover ratio and gross profit ratio values to one de Analyze how well Big Blast Fireworks' managos its inventory: (a) Calculate the inventory tumover ratio for the month of January. If the industry average of the inventory furnover ratio for the month of January is 14 time: is the company managing its invontory more or less efficiently than other companies in the same industry? The inventory turnover ratio is: s the company managing lis imventory more or less efficiently than other cornpanies in the same industry? b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 29%, is the company more or less profitable per dolla tales than other companies in the same industry? Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks' business strategy? is the company's rategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items? On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $45,000 beginning balance of inventory consists of 450 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,350 units for $145,800 on account ( $108 each). January 8 Purchase 1,450 units for $163,850 on account (\$113 each). January 12 Purchase 1,550 units for $182,900 on account (\$118 each). January 15 Return 175 of the units purchased on January 12 because of defects. January 19 Sell 4,500 units on account for $675, 000 The cost of the units sold is determined using a Fifo perpetual inventory system. January 22 Receive $661, eee from customers on accounts receivable. January 24 Pay $440,806 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,400. January 31 Pay cash for sataries during January, 5134,000 . The following information is available on January 31,2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,255, for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,800. 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. Unadjusted BIG BLAST FIREWORKS income statement Analyals > Analyze how well Big Blast Fireworks manages its inventory. (Enter your inventory turnover ratio and gross profit ratio values to one de Analyze how well Big Blast Fireworks' managos its inventory: (a) Calculate the inventory tumover ratio for the month of January. If the industry average of the inventory furnover ratio for the month of January is 14 time: is the company managing its invontory more or less efficiently than other companies in the same industry? The inventory turnover ratio is: s the company managing lis imventory more or less efficiently than other cornpanies in the same industry? b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 29%, is the company more or less profitable per dolla tales than other companies in the same industry? Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks' business strategy? is the company's rategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items
