Requirement 3: C-1. Calculate the asset turnover ratio for the month of January. Answer is complete but not entirely correct. Choose Numerator Asset Turnover Ratio Asset Turnover Ratio Choose Denominator Average Total Assets $ 420,225 X = Net Sales $ 226,000 Asset Turnover 0.54 times + c-2. If the industry average asset turnover is 0.4 times per month, is the company more or less efficient at producing revenues with its assets than other companies in the same industry? More efficient Less efficient Required information [The following information applies to the questions displayed below.) The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 4,100 Accounts 9,100 Receivable Supplies 3,100 Equipment 28,000 Accumulated Depreciation $ 6,400 Accounts Payable 4,400 Utilities Payable 5,400 Deferred Revenue Common Stock 19,000 Retained 9,100 Earnings Totals $44,300 $44,300 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $16,000, and on account, $61,000. 2. March 13 Collect on accounts receivable, $49,000. 3. May 6 Issue shares of common stock in exchange for $12,000 cash. 4. June 30 Pay salaries for the current year, $32,200. 5. September 15 Pay utilities of $5,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $ 8,400. 7. December 30 Pay $2,200 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $6,400. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $8,400 paid in advance by customers, $6,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,800. 9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Credit Answer is not complete. Date General Journal December 31 Sales Revenue Interest Revenue Retained Earnings Debit 226,000 80X 226,080X) 2 217,255X December 31 Retained Earnings Depreciation Expense Salaries Expense Income Tax Expense Utilities Expense So sesso 375X 63,600 x 9,600X 17,100X 3 8,825 X December 31 Retained Earnings Dividends 8,825 X Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,300 Accounts Receivable 26, 200 Allowance for Uncollectible $ 2,800 Accounts Inventory 36,900 Notes Receivable (5%, due in 19,200 2 years) Land 161,000 Accounts Payable 15,400 Common Stock 226,000 Retained Earnings 58, 400 Totals $302,600 $302,600 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,100. The company estimates a residual value of $2,100 and a four-year service life. January 4 Pay cash on accounts payable, $10, 100. January 8 Purchase additional inventory on account, $ 88,900. January 15 Receive cash on accounts receivable, $22,600. January 19 Pay cash for salaries, $30, 400. January 28 Pay cash for January utilities, $17,100. January 30 Sales for January total $226,000. All of these sales are on account. The cost of the units sold is $118,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,600 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,200. e. Accrued income taxes at the end of January are $9,600. 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is complete and correct. TNT FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash $ 4,200 Accounts Receivable 229,600 Allowance for Uncollectible $ 8,580 Accounts Inventory 7,800 Note Receivable 19,200 Land 161,000 Equipment 20,100 Accumulated Depreciation 375 Interest Receivable 80 Income Tax Payable 9,600 Salaries Payable 33,200 Interest Revenue 80 Accounts Payable 94,200 Common Stock 226,000 Retained Earnings 58,400 Sales Revenue 226,000 Cost of Goods Sold 118,000 Depreciation Expense 375 Bad Debt Expense 5,780 Salaries Expense 63,600 Income Tax Expense 9,600 Utilities Expense 17,100 Totals 656,435 656,435 okkssksssssssssssss 7. Analyze how well TNT Fireworks manages its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January Answer is complete but not entirely correct. Choose Numerator Net Income $ 8,825 Return on Assets Ratio Choose Denominator Average Total Assets $ 430,225 + + Return on Assets Ratio Return on assets 2.1% = a-2. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry? More profitable Less profitable Requirement 2: b-1. Calculate the profit margin for the month of January. Choose X Answer is complete but not entirely correct. Profit Margin Choose Profit Numerator Denominator Margin Net Income + Net Sales Profit Margin $ 8,825 - $ 226,000/ = 3.9% b-2. If the industry average profit margin is 4%, is the company more or less efficient at converting sales to profit than other companies in the same industry? More efficient Less efficient