Prepare the following Ratios for January 2021: 1. Current Ratio 2. Acid-Test Ratio 3. Debt Ratio 4. Profit Margin Ratio 5. Gross Margin Ratio 269,575.00 125,500.00 144,075.00 Income Statement For the Month Ended January 2021 Dr. Cr. Revenue: Sales $ 275,575.00 Less: Sales Discount $ 750.00 Sales Return and Allowances $ 5,250.00 Net Sales $ Cost of goods sold $ Gross Profit $ Selling Expenses: Supplies Expense $ 2,400.00 Depreciation Expense: Store Equip $ 800.00 Sales Salaries Expense $ 20,000.00 Sales Payroll Tax Expense $ 5,600.00 Utilities Expense $ 1,200.00 Repairs Expense $ 750.00 Bad Debts Expense $ 2,000.00 $ General and Administrative: Insurance Expense $ 300.00 Repairs Expense $ 2,100.00 Depreciation Expense: Building $ 9,000.00 Depreciation Expense: Office Equip $ 2,500.00 Utilities Expense $ 1,100.00 Office Salaries Expense $ 25,000.00 Office Payroll Tax Expense $ 7,000.00 Amortization Expense $ 800.00 Delivery Expense $ 1,500.00 $ Other Income and Expense(s): Interest Revenue $ 50.00 Interest Expense $ (6,500.00) $ Income before Tax $ Income Tax Expense Net Income $ 32,750.00 49,300.00 (6,450.00 55,575.00 55,575.00 Comparative Balance Sheet for January 2021 and December 2020 Assets: January, 2021 December, 2020 Cash $ 423,615.00$ 74,800.00 Accounts Receivable $ 25,000.00 $ 40,000.00 Allowance for Doubtful debts $ (540.00) Interest Receivable $ 100.00 Notes Receivable $ 15,000.00 Merchandise Inventory $ 7,200.00 $ 50,000.00 Office Supplies $ 500.00 $ 1,500.00 Store Supplies $ 8,000.00 Prepaid Insurance $ 1,600.00 $ 3,000.00 Land $ 375,000.00 $ 125,000.00 Building $ 500,000.00 $ 400,000.00 Accumulated Dep. (Building) $ (72,000.00 $ (63,000.00) Office Equipment $ 70,000.00 $ 70,000.00 Accumulated Dep. (Office Equipment) $ (17,500.00 $ (15,000.00) Store Equipment $ 95,000.00 $ 75,000.00 Accumulated Dep. (Store Equipment) $ (15,800.00 $ (15,000.00) Patents $ 65,000.00 $ 65,800.00 Total Assets $ 1,480,175.00 $ 812,100.00 Liabilities: Accounts Payable $ 30,000.00 $ 25,000.00 Income Tax Payable $ 12,500.00 $ 7,500.00 Interest Payable $ 5,500.00 Notes Payable $ 325,000.00 $ 175,000.00 Bonds Payable $ 375,000.00 Discount on Bonds Payable $ (10,500.00) Mortgage Payable $ 150,000.00 Total Liabilities $ 737,500.00 $ 357,500.00 Stockholder's Equity: Preferred Stock $ 210,000.00 $ 52,500.00 Common Stock $ 120,000.00 $ 115,000.00 Treasury Stock $ (90,000.00) Paid in Capital in Excess of Par: Preferred $ 61,250.00 $ 61,250.00 Paid in Capital in Exccess of Par: Common $ 295,000.00 $ 200,000.00 Paid in Capital Treasury Stock $ 90,000.00 Retained Earnings $ 56,425.00$ 25,850.00 Total Stockholder's Equity $ 742,675.00 $ 454,600.00 Total Liabilities and Stockholder's Equity $ 1,480,175.00 $ 812,100.00
