Problem 5-5A Preparing adjusting entries and income statements, computing gross margin, acid-te and current ratios LO A1, A2, P3, P4 The following information applies to the questions displayed below) The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Credit Debit $ 28,450 14,500 6,000 2,400 42,700 $ 16,000 12,000 18,000 2,100 146,800 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-store equipment Accounts payable 3. Nelson, Capital 3. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals 2,050 2,000 38,000 @ 29,100 @ 16,000 @ 9,500 $192,800 $192,800 Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information a. Store supplies still available at fiscal year-end amount to $2.300. b. Expired insurance, an administrative expense, for the fiscal year is $1.350. c. Depreciation expense on store equipment, a selling expense, is $1650 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 of inventory is still available at fiscal year-end Problem 5-5A Part 4 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017 (Round your answers to 2 decimal places.) Current ratio Acid-test ratio Gross margin ratio 1 1 1