Use the Multi-Step Income Statement and the Comparative Balance Sheet to prepare the following ratios for January 2015:

1. Current Ratio 2. Acid-Test Ratio 3. Debt Ratio 4. Profit Margin Ratio 5. Gross Margin Ratio

ABJ, Inc. Income Statement For Year Ended December 31, 2014 Sales Less: Sales discounts $750.00 Sales returns and allowances 5,250.00 Net Sales Cost of goods sold Gross Profit operating Expenses Selling expenses 800.00 Depreciation expense-Store equipment 20,000.00 Sales salaries expense 2,400.00 Supplies expense-Selling Sales payroll tax expense 5,600.00 Utilities expense: Store 1.200.00 750.00 Repairs expense-Store 2,000.00 Bad debts expense-selling Total selling expenses 32,750.00 General and administrative expenses Depreciation expense-Office equipment 2,500.00 25,000.00 Offices salaries expense 300.00 Insurance expense Utilities expense: Office 1,100.00 10,000.00 Depreciation Expense: Building General Office payroll tax expense 7,000.00 Repairs expense-Office 2,100.00 Amortization expense: PAT-General 800.00 1,500.00 Delivery expense: General 50,300.00 Total general and administrative expenses Total operating expenses Income from operations $431,225.00 6,000.00 425,225.00 125,500.00 299,725.00 83,050.00 216,675.00