Required information[The following information applies to the questions displayed below)On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances:DebitCreditAccountsCash$ 25,000Accounts Receivable47,600Allowance for Uncollectible Accounts$ 4,900InventoryLand20,70053,000Equipment18,500Accumulated Depreciation2,200Accounts Payable29,200Notes Payable (6%, due April 1, 2022)57,000Common Stock42,000Retained Earnings30,300Totals$165,600 $165,600During January 2021, the following transactions occurJanuary 2 Sold gift cards totaling $9,400. The cards are redeemable for merchandise within one year of the purchasedate.January 6 Purchase additional inventory on account, $154,000.January 15 Firework sales for the first half of the month total $142,000. All of these sales are on account. The costof the units sold is $77,300.January 23 Receive $126,100 from customers on accounts receivable.January 25 Pay $97,000 to inventory suppliers on accounts payable.January 28 Write off accounts receivable as uncollectible, $5,500.January 30 firework sales for the second half of the month total $150,000. Sales include $15,000 for cash and $135,000on account. The cost of the units sold is $83,000.January 31 Pay cash for monthly salaries, $52,700.7. Analyze the following for ACME FireworksRequirement 1:a-1. Calculate the current ratio at the end of January.Current RatioChoose Numerator + Choose Denominator11IE#1Current RatioCurrent Ratio

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Answered: -1. Calculate the current ratio at the…

Business

Accounting

-1. Calculate the current ratio at the end of January.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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