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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

FINANCIAL ACCOUNTING
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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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
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
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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