p. 195 2. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, general and administrative expenses. Check (2) Gross profit, $67,750 and (3) Total expenses, $106,775; Net income, $975 3. Prepare a single-step income statement for the year ended January 31. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round ratios to two decimals.) NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 1.000 Merchandise inventory 12,500 Store supplies 5,800 Prepaid insurance 2,400 Store equipment 42,900 Accumulated depreciation-Store equipment $ 15,250 Accounts payable 10,000 J. Nelson, Capital 32,000 J. Nelson, Withdrawals 2,200 Sales 111,950 Sales discounts 2.000 Sales returns and allowances 2,200 Cost of goods sold 38,400 Depreciation expense-Store equipment 0 Sales salaries expense 17,500 Office salaries expense 17,500 Insurance expense 0 Rent expense-Selling space 7,500 Rent expense-Office space 7,500 Store supplies expense 0 Advertising expense 9,800 Totals $169,200 $169,200