(The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2018 Debit $ 7,400 15,000 5,500 2,300 42,700 Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable $ 18,250 18,000 3,000 15,000 Common stock Retained earnings Dividends 2,300 Sales 116,000 1,800 2,050 38,000 Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense- Salaries expense equipment 25,300 Insurance expense Rent expense Store supplies expense Advertising expense 18,000 9,900 $170,250 $170,250 Totals Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, for the fiscal year is $1,600. c. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end. -4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018. (Round your answers to 2 decimal places.) Current ratio :1 Acid-test ratio :1 Gross margin ratio 1%
(The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2018 Debit $ 7,400 15,000 5,500 2,300 42,700 Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable $ 18,250 18,000 3,000 15,000 Common stock Retained earnings Dividends 2,300 Sales 116,000 1,800 2,050 38,000 Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense- Salaries expense equipment 25,300 Insurance expense Rent expense Store supplies expense Advertising expense 18,000 9,900 $170,250 $170,250 Totals Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, for the fiscal year is $1,600. c. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end. -4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018. (Round your answers to 2 decimal places.) Current ratio :1 Acid-test ratio :1 Gross margin ratio 1%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(The following information applies to the questions displayed below.]
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY
Unadjusted Trial Balance
January 31, 2018
Debit
$ 7,400
15,000
5,500
2,300
42,700
Credit
Cash
Merchandise inventory
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciation-Store equipment
Accounts payable
$ 18,250
18,000
3,000
15,000
Common stock
Retained earnings
Dividends
2,300
Sales
116,000
1,800
2,050
38,000
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-
Salaries expense
equipment
25,300
Insurance expense
Rent expense
Store supplies expense
Advertising expense
18,000
9,900
$170,250
$170,250
Totals
Rent expense and salaries expense are equally divided between selling activities and general and administrative
activities. Nelson Company uses a perpetual inventory system.
Additional Information:
a. Store supplies still available at fiscal year-end amount to $2,400.
b. Expired insurance, an administrative expense, for the fiscal year is $1,600.
c. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still
available at fiscal year-end.
-4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018. (Round your answers to 2 decimal places.)
Current ratio
:1
Acid-test ratio
:1
Gross margin ratio
1%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77089213-cd7e-49e5-bdf6-3a4d598abbe4%2F2deeb9e1-2398-4889-acf5-eae1e308a244%2Fuxoy8w.png&w=3840&q=75)
Transcribed Image Text:(The following information applies to the questions displayed below.]
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY
Unadjusted Trial Balance
January 31, 2018
Debit
$ 7,400
15,000
5,500
2,300
42,700
Credit
Cash
Merchandise inventory
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciation-Store equipment
Accounts payable
$ 18,250
18,000
3,000
15,000
Common stock
Retained earnings
Dividends
2,300
Sales
116,000
1,800
2,050
38,000
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-
Salaries expense
equipment
25,300
Insurance expense
Rent expense
Store supplies expense
Advertising expense
18,000
9,900
$170,250
$170,250
Totals
Rent expense and salaries expense are equally divided between selling activities and general and administrative
activities. Nelson Company uses a perpetual inventory system.
Additional Information:
a. Store supplies still available at fiscal year-end amount to $2,400.
b. Expired insurance, an administrative expense, for the fiscal year is $1,600.
c. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still
available at fiscal year-end.
-4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018. (Round your answers to 2 decimal places.)
Current ratio
:1
Acid-test ratio
:1
Gross margin ratio
1%
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