The following unadjusted trial balance is prepared at flinancial year-end for Rex Company Unadjusted Triel Balance Januery 31.2015 Store supplies Prepaid insurance Store equipment $22,350 13,000 5700 2.200 42.500 $ 16,350 Accounts payable T. Rex. Capital T. Rex, withdrawals Sales Sales discounts Sales retuns and alowences Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurence expense Rent expense Store supplies expense Advertising expense 12.000 2.250 2100 2,260 38,000 27,300 13,000 9,800 s 180.450 $180,450 Totals Rent expense and seleries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual inventory system a. Store supplies still available at financiel yeer-end amount to $1,800 b. Expired insurance, an edministrative expense, for the financial year is $1750 Depreciation expense on store equipment, a selling expense, is $1,650 for the financisl d. to estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10.200 of inventory is still avalilable at financial year-end. Learning Objective: 05-A1 Compuse the acid sect ratio and explain its use so assess liqulaity Section Break Difficulty: Hard 05- 2 Comoute the pross margin rstio