Please answer A thru C. Submitted both the balance sheet and General Ledger for accurate balances. Thank you.

Analyze how well Big Blast Fireworks manages its inventory. (Enter your inventory turnover ratio and gross profit ratio values to one decimal place.)

Analyze how well Big Blast Fireworks manages its inventory:
(a) Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for the month of January is 18 times, is the company managing its inventory more or less efficiently than other companies in the same industry?
The inventory turnover ratio is:		times
Is the company managing its inventory more or less efficiently than other companies in the same industry?
(b) Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is 28%, is the company more or less profitable per dollar of sales than other companies in the same industry?
The gross profit ratio is:		%
Is the company more or less profitable per dollar of sales than other companies in the same industry?
(c) Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks business strategy? Is the companys strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?
Based on the inventory turnover ratio and the gross profit ratio, Big Blast Fireworks business strategy appears to be selling a

BIG BLAST FIREWORKS
Classified Balance Sheet
January 31, 2024
Assets		Liabilities
Current Assets:		Current Liabilities:
Cash	$117,900	Accounts Payable	$41,900
Accounts Receivable	62,600	Interest Payable	375
Allowance for Uncollectible Accounts	(5,230)	Income Taxes Payable	14,300
Inventory	713,250
		Total Current Liabilities	56,575
		Notes Payable	50,000
Total Current Assets	888,520	Total Liabilities	106,575
Long-term Assets:		Stockholders Equity
Land	91,600	Common Stock	76,000
		Retained Earnings	797,545
		Total Stockholders Equity	873,545
Total Assets	$980,120	Total Liabilities & Stockholders Equity	$980,120

General Ledger Account

No.	Date	Debit	Credit	Balance
	January 01			25,900
7	January 22	881,000		906,900
8	January 24		650,000	256,900
10	January 31		139,000	117,900

Cash

No.	Date	Debit	Credit	Balance
				46,500
5	January 19	900,000		946,500
7	January 22		881,000	65,500
9	January 27		2,900	62,600

Accounts Receivable

No.	Date	Debit	Credit	Balance
				4,300
9	January 27	2,900		1,400
12	January 31		3,830	5,230

Allowance for Uncollectible Accounts

No.	Date	Debit	Credit	Balance
	January 01			50,000
1	January 03	209,050		259,050
2	January 08	230,100		489,150
3	January 12	252,150		741,300
4	January 15		24,600	716,700
11	January 31		3,450	713,250

Inventory

No.	Date	Debit	Credit	Balance
	January 01			91,600

Land

No.	Date	Debit	Credit	Balance
				25,200
1	January 03		209,050	234,250
2	January 08		230,100	464,350
3	January 12		252,150	716,500
4	January 15	24,600		691,900
8	January 24	650,000		41,900

Accounts Payable

No.	Date	Debit	Credit	Balance
				0
13	January 31		375	375

Interest Payable

No.	Date	Debit	Credit	Balance
				0
14	January 31		14,300	14,300

Income Taxes Payable

No.	Date	Debit	Credit	Balance
				50,000

Notes Payable

No.	Date	Debit	Credit	Balance
				76,000

Common Stock

No.	Date	Debit	Credit	Balance
				58,500
15	January 31		900,000	958,500
16	January 31	859,205		99,295

Retained Earnings

No.	Date	Debit	Credit	Balance
				0
5	January 19		900,000	900,000
15	January 31	900,000		0

Sales Revenue

No.	Date	Debit	Credit	Balance
				0
11	January 31	3,450		3,450
16	January 31		701,700	(698,250)

Cost of Goods Sold

No.	Date	Debit	Credit	Balance
				0
10	January 31	139,000		139,000
16	January 31		139,000	0

Salaries Expense

No.	Date	Debit	Credit	Balance
				0
12	January 31	3,830		3,830
16	January 31		3,830	0

Bad Debt Expense

No.	Date	Debit	Credit	Balance
				0
13	January 31	375		375
16	January 31		375	0

Interest Expense

No.	Date	Debit	Credit	Balance
				0
14	January 31	14,300		14,300
16	January 31		14,300	0

Income Tax Expense