4. Compute the current ratio, acid-test ratlo, and gross margin ratio as of January 31. Note: Round your answers to 2 decimal places. Current ratio Acid-test ratio Gross margin ratio
4. Compute the current ratio, acid-test ratlo, and gross margin ratio as of January 31. Note: Round your answers to 2 decimal places. Current ratio Acid-test ratio Gross margin ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Problem 4-5A (Algo) Part 4
4. Compute the current ratio, acid-test ratio, and gross margin ratlo as of January 31.
Note: Round your answers to 2 decimal places.
Current ratio
Acid-test ratio
Gross margin ratio
:1
81](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5de20a83-4ad8-4820-bfe3-379d0fc71782%2F9cf1f8a4-7748-44d0-a4ef-e8b6b94e8480%2F61sth2m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 4-5A (Algo) Part 4
4. Compute the current ratio, acid-test ratio, and gross margin ratlo as of January 31.
Note: Round your answers to 2 decimal places.
Current ratio
Acid-test ratio
Gross margin ratio
:1
81
![Cash
Merchandise Inventory
Store supplies
Prepaid Insurance
Store equipment
NELSON COMPANY
thatjusted trial Balance
January 31
Accumulated depreciation-store equipment
Accounts payable
Common stock
Retained earnings
Dividends
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-Store equipment
Debit
$ 29,500
12,500
5,500
2,600
42,600
2,150
2,100
2,100
30,000
.
13,400
13,400
Credit
.
6,000
6,000
.
9,800
$ 185,650
$ 19,150
14,000
4,000
33,000
Sales salaries expense
Office salaries expense
Insurance expense
Rent expense-Selling space
Rent expense-Office space
Store supplies expense
Advertising expense
Totals
Additional Information:
a. Store supplies still available at fiscal year-end amount to $1,900
b. Expired Insurance, an administrative expense, is $1.550 for the fiscal year
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
still available at fiscal year-end
115,500
$ 185,650
Problem 4-5A (Algo) Part 4
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31
Note Rund uner answers to 7 decimal nlaces](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5de20a83-4ad8-4820-bfe3-379d0fc71782%2F9cf1f8a4-7748-44d0-a4ef-e8b6b94e8480%2Fz6jhgci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cash
Merchandise Inventory
Store supplies
Prepaid Insurance
Store equipment
NELSON COMPANY
thatjusted trial Balance
January 31
Accumulated depreciation-store equipment
Accounts payable
Common stock
Retained earnings
Dividends
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-Store equipment
Debit
$ 29,500
12,500
5,500
2,600
42,600
2,150
2,100
2,100
30,000
.
13,400
13,400
Credit
.
6,000
6,000
.
9,800
$ 185,650
$ 19,150
14,000
4,000
33,000
Sales salaries expense
Office salaries expense
Insurance expense
Rent expense-Selling space
Rent expense-Office space
Store supplies expense
Advertising expense
Totals
Additional Information:
a. Store supplies still available at fiscal year-end amount to $1,900
b. Expired Insurance, an administrative expense, is $1.550 for the fiscal year
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
still available at fiscal year-end
115,500
$ 185,650
Problem 4-5A (Algo) Part 4
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31
Note Rund uner answers to 7 decimal nlaces
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