only do ANALYSIS TAB questions !!

^^

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Cash Credit $ 26,900 Accounts Receivable 49,800 Allowance for Uncollectible Accounts $ 6,000 Inventory 21,880 Land 64,000 Equipment 24,000 Accumulated Depreciation 3,300 Accounts Payable 30,300 Notes Payable (64, due April 1, 2022) 68,000 Common Stock 53,000 Retained Earnings 25.900 Totals 3186,500 5186,500 During January 2021, the following transactions occur January 2 Sold gift cards totaling $11,680. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional Inventory on account, $165,000. January 15 Firework sales for the first halt of the month total $153,688. All of these sales are on account. The cost of the units sold is $82,800. January 23 Receive $127,200 from customers on accounts receivable. January 25 Pay $188,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,600. January 38 Firework sales for the second half of the month total $161,000. Sales include $18,000 for cash and 5143,000 on account. The cost of the units sold is 588,500. January 31 Pay cash for monthly salaries. $53. AA January 2 Sold gift cards totaling $11,608. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $165,000. January 15 Firework sales for the first half of the month total $153,000. All of these sales are on account. The cost of the units sold is $82,800. January 23 Receive $127,200 from customers on accounts receivable. January 25 Pay $108,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,600. January 30 Firework sales for the second half of the month total $161,000. Sales include $18,000 for cash and $143,000 on account. The cost of the units sold is $88,500. January 31 Pay cash for monthly salaries, $53,800. The following information is available on January 31, a. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,800 and a two-year service life. b. The company estimates future uncollectible accounts. The company determines $29,000 of accounts receivable on January 31 ore past due, and 30% 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 d. Accrued Income taxes at the end of January are $14,800. e. By the end of January, 54,800 of the gift cards sold on January 2 have been redeemed (gnore cost of goods sold). General General Requirement Income Journal Trial Balance Ledger Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis' tab. (Calculate the ratios to the nearest 1 decim place.) Analyze the following for ACME Fireworks: (a) Calculate the current ratio at the end of January. If the average current ratio for the industry is 1.8, is ACME Fireworks more or less liquid than the industry average? 20 The current ratio is is the company more or less liquid than the industry average? Ees (6) Calculate the acid-test ratio at the end of January. If the average acid-test ratio for the industry is 1.5, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? The acid-test ratio is Is the company more or less likely to have difficulty paying its currently maturing debts? (c) Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January, and indicate whether the revised ratio would increase, decrease or remain unchanged compared to your answer in (a) The revised current ratio is Indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (0)