Required information Exercise 6-218 Complete the accounting cycle using inventory transactions (L06-2, 6-3, 6-5, 6-6, 6- [The following information applies to the questions displayed below) On January 1 Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 22,900 39,000 $ 4,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Kocourt Payable Notes Payable (12%, due in 3 years) Canon Stock Retained Eamings Totalt 35,000 69, 100 29, 900 35,000 61,000 36,000 $168,000 $ 166,000 The $35,000 beginning balance of inventory consists of 350 units, each costing $100. During January Year 1, the company had the following inventory transactions a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each b. At the end of January, $4,500 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $12,800. 3. Prepare an adjusted trial balance as of January 31, Year 1 Debit Credit $ 116.400 Adjusted Trial Balance January 31, Year 1 Accounts Cash Accounts receivable Moventory Allowance for uncollectible accounts Accounts payable Income tax payable Notes payable Common stock Retained earnings Sales revenue Exercise 6-21B Part 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-step Income Statement For the year ended January 31, Year 1 . $ 6.900.000 Sales revenue Total operating expenses Operating income (loss) c Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,800. Exercise 6-21B Part 5 5. Prepare a classified balance sheet as of January 31, Year 1. (Amounts to be deducted should be indicated with a minus si Classified Balance Sheet January 31, Year 1 Assets Liabilities . of 0 Total current assets Total current liabilities Total liabilities Stockholders' Equity Exercise 6-21B Part 7 7. Analyze how well the company manages its inventory -1 Calculate the inventory turnover ratio for the month of January (Round your final answer to 1 decimal place) The Inventory turnover ratio is 0-2. If the industry average of the inventory turnover ratio for the month of January is 18,5 times, is the company managing its inventory more or less efficiently than other companies in the same industry? 'More Less