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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

NELSON COMPANY
Unadjusted Trial Balance
January 31
Debit Credit
Cash $ 32,350
Merchandise inventory 13,500
Store supplies 5,500
Prepaid insurance 2,400
Store equipment 42,800
Accumulated depreciationStore equipment $ 19,150
Accounts payable 17,000
Common stock 4,000
Retained earnings 33,000
Dividends 2,150
Sales 116,450
Sales discounts 1,900
Sales returns and allowances 2,100
Cost of goods sold 38,000
Depreciation expenseStore equipment 0
Sales salaries expense 12,700
Office salaries expense 12,700
Insurance expense 0
Rent expenseSelling space 7,000
Rent expenseOffice space 7,000
Store supplies expense 0
Advertising expense 9,500
Totals $ 189,600 $ 189,600

Additional Information:

  1. Store supplies still available at fiscal year-end amount to $1,800.
  2. Expired insurance, an administrative expense, is $1,550 for the fiscal year.
  3. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
  4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end

1.) Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.

Note: Round your answers to 2 decimal places.

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