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Problem 4.5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios...

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Accounting

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Problem 4.5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 [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 uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative Additional Information. 0. Store supplies still available at fiscal yeat-end amount to $2,400 b. Expired insurance, an adininistrative expense, 15$1,750 for the fiscal year c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. d. To estimate shrinkage, a physicai count of ending merchandise inventory is taken. it shows $10,700 of inventory is still avallable at fiscal year-end Problem 45 A Part 4 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31 . (Round your onswers to 2 decimal ploces.)

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