Required information Problem 4-5A (Algo) Preparing adjusting entries and income statements; computing gross margin, acidtest, and current ratios LO A1, 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 uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense, It categorizes the remaining expenses as general and administrative. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,500 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken, it shows $10,700 of inventory is still available at fiscal year-end. Problem 4-5A (Algo) Part 4 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31 . Note: Round your answers to 2 decimal places. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,500 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year: d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10.700 of inventory is stil available at fiscal year-end