For the months November, December, and January, I have been tasked to find the Current Liabilites, net income, debt ratio, and Return on equity. I have already began work on this assignment and would like some confirmation of my findings as well as work shown for how your answers were found so I can see my errors if any were made. Thank you. ### Acme Company### Trial BalancesThis table displays the trial balances of Acme Company for the months of November, December, and January. Each account is listed with corresponding balances for the three months.| Account Description | November | December | January ||-----------------------------------------|--------------|--------------|--------------|| **101 Cash** | 26,694.08 | 37,308.90 | 17,330.00 || **112 Accounts Receivable** | 2,800.00 | 11,700.00 | 12,719.40 || **115 Notes Receivable** | 10,000.00 | 10,000.00 | 10,000.00 || **118 Interest Receivable** | | 41.67 | 125.00 || **120 Merchandise Inventory** | 3,600.00 | 3,150.00 | 28,139.75 || **123 Prepaid Advertising** | 250.00 | | 150.00 || **125 Office Supplies** | 180.00 | | 70.00 || **130 Prepaid Insurance** | 1,100.00 | | 1,000.00 || **140 Land** | 70,000.00 | 59,500.00 | 59,500.00 || **157 Equipment** | | 12,000.00 | 12,000.00 || **158 Accumulated Depreciation - Equipmen** | (116.66) | | (233.32) || **201 Accounts Payable** | (537.18) | (10,000.00) | (13,000.00) || **208 Unearned Rent Revenue** | | 525.00 | (375.00) || **213 Salaries and Wages Payable** | | 984.00 | (656.00) || **227 Sales Taxes Payable** | (288.75) | | || **230 Interest Payable** | (737.50) ### Financial Performance Table#### Monthly OverviewThis table presents the financial performance indicators for the months of November, December, and January. Key financial metrics are categorized under assets, liabilities, equity, sales, and various financial ratios that are crucial for analyzing the business's performance.#### Column Headings:- **November**: Financial data for November.- **December**: Financial data for December.- **January**: Financial data for January.#### Row Definitions:1. **Current Assets**: Include all assets that are expected to be converted into cash within one year.2. **Acid-test Assets**: A stringent indicator that includes assets quickly convertible to cash.3. **Inventory**: Goods and materials that a business holds for the purpose of resale.4. **Total Assets**: Sum of current and non-current assets.5. **Current Liabilities**: Obligations the company needs to pay within one year.6. **Long-term Debt**: Debt or financial obligations with a maturity of more than one year.7. **Total Liabilities**: Sum of current and long-term liabilities.8. **Stockholder's Equity**: Remaining interest in assets of the company after deducting liabilities.9. **Net Sales**: Value of total sales minus returns, allowances, and discounts.10. **Net Income**: Profit after all expenses have been deducted from total revenue.11. **Acid-test Ratio**: Indicator of a company's short-term liquidity, calculated as (Current Assets - Inventory) / Current Liabilities.12. **Asset Turnover Ratio**: Measures the efficiency of a company's use of its assets in generating sales revenue.13. **Current Ratio**: Current Assets divided by Current Liabilities, representing the company's ability to cover short-term obligations.14. **Days Sales in Inventory Ratio**: Average number of days that a company takes to sell its inventory.15. **Debt Ratio**: Total Liabilities divided by Total Assets, indicating proportion of company's assets financed by debt.16. **Debt to Equity**: Comparison of total liabilities to stockholder's equity.17. **Gross Profit Margin**: Measures the gross profit as a percentage of revenue.18. **Inventory Turnover Ratio**: Number of times inventory is sold or used in a time period.19. **Return on Assets Ratio**: Net Income divided by Total Assets, indicating profitability relative to total assets.20. **Return on Equity Ratio**:

Five important components of financial statements Revenue, Expenses, Assets, Liabilities and Equity.…

Answered: For the months November, December, and…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q