Please help quick. OR Jahuary 1, 2021, the general ledger of TNT Fireworks includes the following account balances:AccountsDebit$ 59,40026,400CashCreditAccounts ReceivableAllowance for Uncollectible AccountsInventoryNotes Receivable (5%, due in 2 years)$ 2,90037, 00020,400162,000LandAccounts Payable15,500227,00059,800$305, 200Common StockRetained EarningsTotals$305, 200During January 2021, the following transactions occur:January 1 Purchase equipment for $20, 200. The company estimates a residual value of $2,200 and a six-year service life.January 4 Pay cash on accounts payable, $10, 200.lanuary 8 Purchase additional inventory on account, $89,900.January 15 Receive cash on accounts receivable, $22,700.January 19 Pay cash for salaries, $30,5eo.January 28 Pay cash for January utilities, $17,200.January 30 Sales for January total $227, e00. All of these sales are on account. The cost of the units sold is $118, 500.The following information is available on January 31, 2021.a. Depreciation on the equipment for the month of January is calculated using the straight-line method.b. The company estimates future uncollectible accounts. The company determines $3,700 of accounts receivable on January 31 arepast due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are notpast due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balancecalculated in the general ledger)c. Accrued interest revenue on notes recelvable for Januaryd. Unpaid salaries at the end of January are $33,300e. Accrued income texes at the end of January are $9,700 GeneralJournalGeneralIncomeStatementRequirementTrial BalanceBalance SheetAnalysisLedgerUsing the information from the requirements above, complete the 'Analysis' tab. (Round final answers to 1 decimal place.37Analyze how well TNT Fireworks manages its assets:(a) Calculate the return on assets ratio for the month of January. If the average return on assets for the industry in January is2%, is the company more or less profitable than other companies in the same industry?The return on assets ratio is:cesThe company is more profitable. (True or Faise)True(b) Calculate the profit margin for the month of January. If the industry average profit margin is 3%, is the company more or lessefficient at converting sales to profit than other companies in the same industry?The profit margin isThe company is more efficiont at converting sales to profit. (True or Falso)True(c) Calculate the asset turmover ratio for the month of January. If the industry average asset turnover is 0.5 times per month, isthe company more or less efficient at producing revenues with its assets than other companios in the same industry?The assot tunover ratio is:timesThe company is more efficiont at producing revenuos with its assots (Truo or False)TruoBalance Sheet

Ratio Analysis - The ratio is used to recognize liquidity, Solvency and Profitability of the…

Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Debit $ 59,400 26,400 Credit $ 2,900 37,000 20,400 162,000 Land Accounts Payable Common Stock Retained Earnings 15, 500 227,000 59, 800 $305, 200 Totals $305, 200 During January 2021, the following transactions occur: January 1 Purchase equipment for $20, 200. The company estimates a residual value of $2,200 and a six-year service life. January 4 Pay cash on accounts payable, $10,200. January 8 Purchase additional inventory on account, $89,900. January 15 Receive cash on accounts receivable, $22,7eo. January 19 Pay cash for salaries, $30,500. January 28 Pay cash for January utilities, s17,200. January 30 Sales for January total $227,000. All of these sales are on account. The cost of the units sold is $118, S00. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $3,700 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,300 e. Accrued income texes at the end of January are $9,700

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q