The following unadjusted trial balance is prepared at fiscal year-end for Foster Products Company Credit FOSTER PRODUCTS COMPANY Unadjusted Trial Balance October 31, 2017 Debit 2 Cash $ 7.400 3 Merchandise inventory 24,000 4 Store supplies 9.700 5 Prepaid insurance 6,600 6 Store equipment 81.800 7 Accumulated depreciation-Store equipment 8 Accounts payable 9 Common stock 10 Retained earnings 11 Dividends 12 Sales 13 Sales discounts 1.000 14 Sales returns and allowances 5.000 15 Cost of goods sold 75,800 16 Depreciation expense-Store equipment 17 Salaries expense 63.000 18 Insurance expense 19 Rent expense 26,000 20 Store supplies expense 21 Advertising expense 17.800 22 Totals $320.100 $ 32,000 18,000 3,000 40,000 2.000 227,100 O $320.100 Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Foster Products Company uses a perpetual inventory system. Required 1. Prepare adjusting journal entries to reflect each of the following: a. Store supplies still available at fiscal year-end amount to $3,700. b. Expired insurance, an administrative expense, for the fiscal year is $2,800. c. Depreciation expense on store equipment, a selling expense, is $3,000 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $21,300 of inventory is still available at fiscal year-end. 2. Prepare a multiple-step income statement for fiscal year 2017 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for fiscal year 2017. Check 2) Gross profit. $142.600 (3) Total expenses $197,100 Net Income $24,000 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of October 31, 2017. (Round ratios to two decimals.)