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: Accounts Debit Credit Cash 5 25,600 Accounts Receivable 47,20e Allowance for uncollectible Accounts 57ee Inventory 20,589 Land 51,000 Equipment 17,500 Accumulated Depreciation 2,689 Accounts Payable 29,000 Notes Payable (6%, due April 1, 2022) 55, common Stock go Retained Earnings 31,100 Totals 3161,800 $161,800 During January 2021, the following transactions occur January 2 Sold gift cards totaling 59,900. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $152,09 January 15 Firework sales for the first half of the month total $140,00. All of these sales are on account. The cost of the units sold is $74,380. January 23 Receive $125,9ee from customers D Decounts receivable. January 25 Pay $95.ee to inventory suppliers accounts payable. January 25 write off accounts receivable is collectible, 39,000. January 38 Firework sales for the second half of the month total 5143,000 Sales include $10,000 for cash and $138.000 on account. The cost of the units sold 1 582,000 January 31 Pay Cash for monthly salaries, 952, Requirement 2: 15 pointer b-1. Calculate the acid test ratio at the end of January Acid-last Ratio eBook Choose Numerator Choose Denominator Acid-test Ratio Acid-test Ratio Perences b-2. If the average arkitestraliu for the industry is 150 is ACME Hreworks more or less likely to have difficulty poving its crently matuning debts compared to the inclustry average More likely Less likely 7. Analyze the following for ACME Fireworks Requirement 1: 6-1. Calculate the current ratio at the end of January Current Ratio Choose Numerator Choose Denominator Current Ratio Current Ratio 0 6-2. If the average current ratio for the industry is 1.80, Is ACME Fireworks more or less liquid than the industry averag O More liquid Oless liquid 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 Numerator Choose Denominator Current Ratio Current Ratio timos c-2. Indicate whether the revised ratio would increase, decrease of remain unchanged O Decrease the current ratio Increase the current ratio O Remain unchanged 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: Accounts Debit Credit Cash 5 25,600 Accounts Receivable 47,20e Allowance for uncollectible Accounts 57ee Inventory 20,589 Land 51,000 Equipment 17,500 Accumulated Depreciation 2,689 Accounts Payable 29,000 Notes Payable (6%, due April 1, 2022) 55, common Stock go Retained Earnings 31,100 Totals 3161,800 $161,800 During January 2021, the following transactions occur January 2 Sold gift cards totaling 59,900. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $152,09 January 15 Firework sales for the first half of the month total $140,00. All of these sales are on account. The cost of the units sold is $74,380. January 23 Receive $125,9ee from customers D Decounts receivable. January 25 Pay $95.ee to inventory suppliers accounts payable. January 25 write off accounts receivable is collectible, 39,000. January 38 Firework sales for the second half of the month total 5143,000 Sales include $10,000 for cash and $138.000 on account. The cost of the units sold 1 582,000 January 31 Pay Cash for monthly salaries, 952, Requirement 2: 15 pointer b-1. Calculate the acid test ratio at the end of January Acid-last Ratio eBook Choose Numerator Choose Denominator Acid-test Ratio Acid-test Ratio Perences b-2. If the average arkitestraliu for the industry is 150 is ACME Hreworks more or less likely to have difficulty poving its crently matuning debts compared to the inclustry average More likely Less likely 7. Analyze the following for ACME Fireworks Requirement 1: 6-1. Calculate the current ratio at the end of January Current Ratio Choose Numerator Choose Denominator Current Ratio Current Ratio 0 6-2. If the average current ratio for the industry is 1.80, Is ACME Fireworks more or less liquid than the industry averag O More liquid Oless liquid 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 Numerator Choose Denominator Current Ratio Current Ratio timos c-2. Indicate whether the revised ratio would increase, decrease of remain unchanged O Decrease the current ratio Increase the current ratio O Remain unchanged