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 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Debit $ 26,800 49,600 $ 5,900 Inventory 21,700 63,000 23,500 Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 3,200 30, 200 67,000 52,000 26,300 $184,600 $184,600 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $164,000. January 15 Firework sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300. January 23 Receive $127, 100 from customers on accounts receivable. January 25 Pay $107,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,500. January 30 Firework sales for the second half of the month total $160,000. Sales include $11,000 for cash and $149,000 on account. The cost of the units sold is $88,000. January 31 Pay cash for monthly salaries, $53,700. 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January. Current Ratio Current Ratio Choose Numerator Current Assets Choose Denominator + Current Liabilities Current Ratio 0 a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? More liquid O Less liquid b-1. Calculate the acid-test ratio at the end of January Acid-test Ratio + Choose Denominator = Choose Numerator Quick Assets Acid-test Ratio Acid-test Ratio + Current Liabilities b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? O More likely Less likely 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 Liabilities Current Ratio Current Ratio Current Assets o times c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. O Decrease the current ratio O Increase the current ratio O Remain unchanged