Question
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY
Unadjusted Trial Balance
January 31, 2017
Debit
Credit
Cash
$
44,500
Merchandise inventory
13,500
Store supplies
5,400
Prepaid insurance
2,800
Store equipment
42,600
Accumulated depreciationStore equipment
$
18,250
Accounts payable
17,000
Common stock
3,000
Retained earnings
15,000
Dividends
2,000
Sales
155,150
Sales discounts
2,000
Sales returns and allowances
2,100
Cost of goods sold
38,000
Depreciation expenseStore equipment
0
Salaries expense
30,500
Insurance expense
0
Rent expense
15,000
Store supplies expense
0
Advertising expense
10,000
Totals
$
208,400
$
208,400
Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.
Additional Information:
- Store supplies still available at fiscal year-end amount to $2,850.
- Expired insurance, an administrative expense, for the fiscal year is $1,500.
- Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year.
- To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end.ev:10_24_2018_QC_CS-145044
4.Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017.(Round your answers to 2 decimal places.)
I CANNOT FIGURE OUT HOW TO GET THE FOLLOWING:
*** Current ratio
*** Acid-test ratio
*** Gross margin ratio
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