Problem 4.5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
