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 $ 26,700 49,400 $ 5,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due 1, 2822) Common Stock Retained Earnings Totals 21,600 62,000 23,000 3,100 30,180 66,000 51,800 26,700 $182,700 $182,700 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $163,000. January 15 Firework sales for the first half of the month total $151,80e. All of these sales are on account. The cost of the units sold is $81,800. January 23 Receive $127,eee from customers on accounts receivable. January 25 Pay $106,000 to inventory suppliers on accounts payable. January 28 write off accounts receivable as uncollectible, $6,400. January 30 Firework sales for the second half of the month total $159, eee. sales include $13, eee for cash and $146, eee on account. The cost of the units sold is $87,500. January 31 Pay cash for monthly salaries, $53,680. 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January Choose Numerator Current Assets Answer is complete but not entirely correct. Current Ratio Choose Current Ratio Denominator Current Liabilities Current Ratio S 108,630 2.14 IS 232,700 . Requirement 2: b-1. Calculate the acid-test ratio at the end of January Answer is complete but not entirely correct. Acid-test Ratio Choose Choose Numerator Denominator Acid-test Ratio Current Assets x- Current Liabilities Acid-test Ratio S 232,700 X- S 108,630 2.14 = 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 Fixed Assests 313,850 Answer is complete but not entirely correct. Current Ratio Choose Denominator Current Ratio Current Liabilities Current Ratio 108,630 2.89 times 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 $ 26,700 49,400 $ 5,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due 1, 2822) Common Stock Retained Earnings Totals 21,600 62,000 23,000 3,100 30,180 66,000 51,800 26,700 $182,700 $182,700 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $163,000. January 15 Firework sales for the first half of the month total $151,80e. All of these sales are on account. The cost of the units sold is $81,800. January 23 Receive $127,eee from customers on accounts receivable. January 25 Pay $106,000 to inventory suppliers on accounts payable. January 28 write off accounts receivable as uncollectible, $6,400. January 30 Firework sales for the second half of the month total $159, eee. sales include $13, eee for cash and $146, eee on account. The cost of the units sold is $87,500. January 31 Pay cash for monthly salaries, $53,680. 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January Choose Numerator Current Assets Answer is complete but not entirely correct. Current Ratio Choose Current Ratio Denominator Current Liabilities Current Ratio S 108,630 2.14 IS 232,700 . Requirement 2: b-1. Calculate the acid-test ratio at the end of January Answer is complete but not entirely correct. Acid-test Ratio Choose Choose Numerator Denominator Acid-test Ratio Current Assets x- Current Liabilities Acid-test Ratio S 232,700 X- S 108,630 2.14 = 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 Fixed Assests 313,850 Answer is complete but not entirely correct. Current Ratio Choose Denominator Current Ratio Current Liabilities Current Ratio 108,630 2.89 times
