### Account Balances on January 1, Year 1The general ledger of a company includes the following account balances:| Accounts | Debit | Credit ||--------------------------------------|------------|-----------|| Cash | $25,600 | || Accounts Receivable | $47,200 | || Allowance for Uncollectible Accounts | | $4,700 || Inventory | $20,500 | || Land | $51,000 | || Equipment | $17,500 | || Accumulated Depreciation | | $2,000 || Accounts Payable | | $29,000 || Notes Payable (6%, due April 1, Year 2) | | $55,000 || Common Stock | | $40,000 || Retained Earnings | | $31,100 || **Totals** | **$161,800** | **$161,800** |### Transactions During January, Year 1- **January 2**: Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date.- **January 6**: Purchased additional inventory on account, $152,000.- **January 15**: The company sales for the first half of the month totaled $140,000. All sales are on account. The cost of the units sold is $76,300.- **January 23**: Received $125,900 from customers on accounts receivable.- **January 25**: Paid $95,000 to inventory suppliers on accounts payable.- **January 28**: Wrote off accounts receivable as uncollectible, $5,300.- **January 30**: Company sales for the second half of the month totaled $148,000. Sales include $10,000 for cash and $138,000 on account. The cost of the units sold is $82,000.- **January 31**: Paid cash for monthly salaries, $52,500. **Text and Explanation for an Educational Website**---**Problem Statement:**c-1. Assume the notes payable were due on April 1, Year 1, rather than April 1, Year 2. Calculate the revised current ratio at the end of January.---**Diagram Explanation:**The diagram provided is a table used to calculate the Current Ratio, which measures a company's ability to pay short-term obligations. **Table Components:**- **Table Header (Blue Background):** - *Current Ratio* is the main title indicating the calculation performed using the figures within the table.- **Columns:** 1. **Choose Numerator:** - *Current Assets* is selected as the numerator. 2. **Choose Denominator:** - *Current Liabilities* is selected as the denominator. 3. **Current Ratio:** - Displays the resulting Current Ratio, with a placeholder shown as "0 times".- **Rows:** - There is one filled row with "Current Assets" and "Current Liabilities" as placeholders for entering numerical values. The output shows the current ratio as "0 times," which may suggest the need for numerical input to demonstrate an actual ratio. **Understanding Current Ratio:**The Current Ratio formula is:\[ \text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}} \]A current ratio less than 1 may indicate potential liquidity issues, while a ratio above 1 suggests better short-term financial health.---This table setup guides users in understanding how to compute the current ratio by entering the appropriate values for current assets and current liabilities.

Name: ### Account Balances on January 1, Year 1The general ledger of a comp
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: ### Account Balances on January 1, Year 1The general ledger of a company includes the following account balances:| Accounts | Debit | Credit ||--------------------------------------|------------|-----------|| Cash