Required information [The following information applies to the questions displayed below) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,200 46,400 $ 4,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 20,100 47,000 16,000 1,600 28,600 51,000 36,000 33,200 $154,700 $154,700 During January 2021, the following transactions occur January 2 Sold gift cards totaling 58,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional Inventory on account, $148,000. January 15 Firework sales for the first half of the month total $136,000. All of these sales are on account. The cost of the units sold is $74,300. January 23 Receive $125,500 from customers on accounts receivable. January 25 Pay 591,000 to inventory suppliers on accounts payable. January sa Fireworks sales for the second half of the month tota1 $244,000. Soles include $10,000 for cash and $234, obes on account. The cost of the units sold is $80,000. January 31 Pay cash for monthly salaries, $52,100. 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January Current Ratio 7. Analyze the following for ACME Fireworks Requirement 1: 6-1. Calculate the current ratio at the end of January ort 7 of 7 Current Ratio . Choose Denominator Ants Choose Numerator Current Ratio Current Ratio eBook References 0-2. If the average current ratio for the industry is 180, is ACME Fireworks more or less liquid than the industry average? O More liquid Less liquid Requirement 2: b-1. Calculate the acid test ratio at the end of January Acid test Ratio Choose Numerator + Choose Denominator Acid test Ratio Acid-test Ratio . b-1. Calculate the acid-test ratio at the end of January Acid.test Ratio Choose Numerator Choose Denominator - Acid.test Ratio Acid-test Ratio b-2. If the average acid-test ratio for the industry is 150, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? More likely Less likely Requirement 3: C-1. Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January Choose Numerator Current Ratio Choose Denominator Current Ratio at Batin Requirement 3: c-1. Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January Current Ratio Choose Denominator Choose Numerator = Current Ratio Current Ratio times c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. Decrease the current ratio O increase the current ratio O Remain unchanged
