The following information applies to the questions displayed below.]

On January 1, Year 1, the general ledger of a company includes the following account balances: D=Debit, C=Credit

Accounts Debit Credit

Cash $ 60,400(D)

Accounts Receivable 28,400 (D)

Allowance for Uncollectible Accounts $ 3,900 (C)

Inventory 38,000 (D)

Notes Receivable (5%, due in 2 years) 32,400(D)

Land 172,000 (D)

Accounts Payable 16,500 (C)

Common Stock 237,000 (C)

Retained Earnings 73,800 (C)

Totals $ 331,200 $ 331,200

During January Year 1, the following transactions occur:

January 1 Purchase equipment for $21,200. The company estimates a residual value of $3,200 and a four-year service life.

January 4 Pay cash on accounts payable, $11,200.

January 8 Purchase additional inventory on account, $99,900.

January 15 Receive cash on accounts receivable, $23,700.

January 19 Pay cash for salaries, $31,500.

January 28 Pay cash for January utilities, $18,200.

January 30 Sales for January total $237,000. All of these sales are on account. The cost of the units sold is $123,500.

Information for adjusting entries:

Depreciation on the equipment for the month of January is calculated using the straight-line method.

The company estimates future uncollectible accounts. The company determines $4,700 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.)

Accrued interest revenue on notes receivable for January.

Unpaid salaries at the end of January are $34,300.

Accrued income taxes at the end of January are $10,700.

Required information b-1. Calculate the profit margin for the month of January Answer is complete but not entirely correct. Choose Numerator Net Sales 237,000 Prett Man Choose benaminator Average Total Assets - 400.650 - Profils Margin Profit Margin 59.29 b-2. If the industry average profit margin is 4%, is the company more or less officient at converting sales to profit than other companies in the same industry? More efficient Less efficient