Cash 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.) Current ratio Acid-test ratio Gross margin ratio Merchandise inventory. Store supplies Prepaid insurance Store equipment Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Accumulated depreciation-Store equipment Accounts payable Common stock 1 1 11 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 16,050 12,000 5,000 2,200 42,800 2,150 1,850 2,150 38,000 0 14,400 14,400 0 7,500 7,500 0 9,300 $175,300 Credit $ 16,500 14,000 3,000 27,000 114,800 $175,300 a. Store supplies still available at fiscal year-end amount to $2,750. b. Expired insurance, an administrative expense, is $1,650 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end.
Cash 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.) Current ratio Acid-test ratio Gross margin ratio Merchandise inventory. Store supplies Prepaid insurance Store equipment Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Accumulated depreciation-Store equipment Accounts payable Common stock 1 1 11 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 16,050 12,000 5,000 2,200 42,800 2,150 1,850 2,150 38,000 0 14,400 14,400 0 7,500 7,500 0 9,300 $175,300 Credit $ 16,500 14,000 3,000 27,000 114,800 $175,300 a. Store supplies still available at fiscal year-end amount to $2,750. b. Expired insurance, an administrative expense, is $1,650 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.)
Current ratio
Acid-test ratio
Gross margin ratio
Cash
Merchandise inventory
Store supplies
Prepaid insurance
Store equipment
Retained earnings
Dividends
1
NELSON COMPANY
Unadjusted Trial Balance
January 31
Accumulated depreciation-Store equipment
Accounts payable
Common stock
1
21
Insurance expense
Rent expense-Selling space
Rent expense-Office space
Store supplies expense
Advertising expense
Totals
Additional Information:
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-Store equipment
Sales salaries expense
Office salaries expense
Debit
$ 16,050
12,000
5,000
2,200
42,800
2,150
1,850
2,150
38,000
0
Credit
$ 16,500
14,000
3,000
27,000
114,800
14,400
14,400
0
7,500
7,500
0
9,300
$175,300 $175,300
a. Store supplies still available at fiscal year-end amount to $2,750.
b. Expired insurance, an administrative expense, is $1,650 for the fiscal year.
c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still
available at fiscal year-end.
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