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NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 20,700 Merchandise inventory 12,500...

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Accounting

NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 20,700 Merchandise inventory 12,500 Store supplies 6,000 Prepaid insurance 2,100 Store equipment 42,900 Accumulated depreciationStore equipment $ 16,850 Accounts payable 15,000 Common stock 5,000 Retained earnings 29,000 Dividends 2,250 Sales 116,600 Sales discounts 2,050 Sales returns and allowances 2,050 Cost of goods sold 38,000 Depreciation expenseStore equipment 0 Sales salaries expense 14,450 Office salaries expense 14,450 Insurance expense 0 Rent expenseSelling space 7,500 Rent expenseOffice space 7,500 Store supplies expense 0 Advertising expense 10,000 Totals $ 182,450 $ 182,450 Additional Information:

  1. Store supplies still available at fiscal year-end amount to $2,950.
  2. Expired insurance, an administrative expense, is $1,350 for the fiscal year.
  3. Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year.
  4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end.

Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.

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