The following information is avallable on January $31,2024.$ a$.$ At the end of January, the company estimates that the remaining units of Inventory purchased on January $12$ are expected to sell In February for only $$100$ each. $[$Hint: Determine the number of units remaining from January $12$ after subtracting the units returned on January $15$ and the units assumed sold $($FIFO$)$ on January $19.]$ b$.$ The company records an adjusting entry for $$3,750.$ for estimated future uncollectible accounts. c$.$ The company accrues interest on notes payable for January. Interest is expected to be pald each December $31.$ d$.$ The company accrues income taxes at the end of January of $$13,600.$ Requirement General Journal General Ledger Trial Balance Income StatementJanuary $3$ Purchase $1,150$ units for $$121,980$ on account $($ $$186$ each$).$

January $8$ Purchase $1,250$ units for $$138,750$ on account $($ $$111$ each$).$

January $12$ Purchase $1,350$ units for $$156,680$ on account $($$$116$ each$).$

January $15$ Return $165$ of the units purchased on January $12$ because of defects.

January $19$ Sell $3,960$ units on account for $$624,680$ The cost of the units sold is determined using a FIFO perpetual inventory system.

January $22$ Receive $$573,860$ from customers on accounts receivable.

January $24$ Pay $$380,680$ to inventory suppliers on accounts payable.

January $27$ write off accounts receivable as uncollectible, $$2,280.$

January $31$ Pay cash for salaries during January, $$132,680.$

The following information Is avallable on January $31,2024.$

a$.$ At the end of January, the company estimates that the remalning units of Inventory purchased on January $12$ are expected to sell

In February for only $$100$ each. $[$HInt: Determine the number of units remaining from January $12$ after subtracting the units

returned on January $15$ and the units assumed sold $($FIFO$)$ on January $19.]$

b$.$ The company records an adjusting entry for $$3,750.$ for estimated future uncollectlble accounts.

c$.$ The company accrues interest on notes payable for January. Interest is expected to be pald each December $31.$

d$.$ The company accrues income taxes at the end of January of $$13,600.$

Analyze how well Big Blast Fireworks manages its inventory.

Note: Enter your inventory turnover ratio and gross profit ratio values to one decimal place.

Analyze how well Big Blast Fireworks' manages its inventory:

$($a$)$ Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for the month of January is $13\mathrm{.}2$

times, is the company managing its inventory more or less efficiently than other companies in the same industry?

The inventory turnover ratio is:

Is the company managing its inventory more or less efficiently than other companies in the same

industry?

$($b$)$ Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is $33\%,$ is the company more or less profitable per

dollar of sales than other companies in the same industry?

The gross profit ratio is:

Is the company more or less profitable per dollar of sales than other companies in the same industry?

$($c$)$ Used together, what might the inventory turnover ratio and gross profit ratio suggest about Big Blast Fireworks' business strategy? Is the company's

strategy to sell a higher volume of less expensive items, or does the company appear to be selling a lower volume of more expensive items?

Based on the inventory turnover ratio and the gross profit ratio, Big Blast Fireworks' business strategy

appears to be selling a