The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company...
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Accounting
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 ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.
NELSON COMPANY | ||
---|---|---|
Unadjusted Trial Balance | ||
January 31 | ||
Debit | Credit | |
Cash | $ 32,350 | |
Merchandise inventory | 13,500 | |
Store supplies | 5,500 | |
Prepaid insurance | 2,400 | |
Store equipment | 42,800 | |
Accumulated depreciationStore equipment | $ 19,150 | |
Accounts payable | 17,000 | |
Common stock | 4,000 | |
Retained earnings | 33,000 | |
Dividends | 2,150 | |
Sales | 116,450 | |
Sales discounts | 1,900 | |
Sales returns and allowances | 2,100 | |
Cost of goods sold | 38,000 | |
Depreciation expenseStore equipment | 0 | |
Sales salaries expense | 12,700 | |
Office salaries expense | 12,700 | |
Insurance expense | 0 | |
Rent expenseSelling space | 7,000 | |
Rent expenseOffice space | 7,000 | |
Store supplies expense | 0 | |
Advertising expense | 9,500 | |
Totals | $ 189,600 | $ 189,600 |
Additional Information:
- Store supplies still available at fiscal year-end amount to $1,800.
- Expired insurance, an administrative expense, is $1,550 for the fiscal year.
- Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
- To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end
1.) Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.
Note: Round your answers to 2 decimal places.
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