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The question is Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2013. (Round your answers to 2 decimal places.)?
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Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2013. (Round your answers to 2 decimal places.)? Current ratio Acid-test ratio Gross margin ratio |
NELSON COMPANY Unadjusted Trial Balance January 31, 2013 | ||||
Debit | Credit | |||
Cash | $ | 24,600 | ||
Merchandise inventory | 12,500 | |||
Store supplies | 5,900 | |||
Prepaid insurance | 2,300 | |||
Store equipment | 42,900 | |||
Accumulated depreciationStore equipment | $ | 19,950 | ||
Accounts payable | 13,000 | |||
J. Nelson, Capital | 39,000 | |||
J. Nelson, Withdrawals | 2,100 | |||
Sales | 115,200 | |||
Sales discounts | 2,000 | |||
Sales returns and allowances | 2,250 | |||
Cost of goods sold | 38,000 | |||
Depreciation expenseStore equipment | 0 | |||
Salaries expense | 31,300 | |||
Insurance expense | 0 | |||
Rent expense | 14,000 | |||
Store supplies expense | 0 | |||
Advertising expense | 9,300 | |||
Totals | $ | 187,150 | $ | 187,150 |
Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nelson Company uses a perpetual inventory system. |
a. | Store supplies still available at fiscal year-end amount to $2,800. |
b. | Expired insurance, an administrative expense, for the fiscal year is $1,500. |
c. | Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. |
d. | To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end. |
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