Prepare the following Ratios for January 2018 and include formula and calculation:

1. Current Ratio
2. Acid-Test Ratio
3. Working Capital
4. Days’ sales in inventory
5. 

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Be Prepared Adjusted Trial Balance January 31, 2018 Account ID Account Description Debits Credits Cash 687,490.00 1001 1021 Accounts Receivable 1022 Allowance for Daubtful Accounts 23,000.00 460.00 1027 Interest Receivable 60.00 1031 Notes Receivable 10,000.00 5,190.00 10,000.00 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies Prepaid insurance 300.00 1125 2.800.00 1401 Land 414,250.00 1411 Building 400,000.00 Accum Dep: Building Ofice Equipment 1412 45,750.00 1431 90,000.00 1432 Accum Dep: Office Equipment Store Equipment 17,500.00 1451 125,000.00 1452 15,800.00 Accum Dep: Store Equipment Patents Accounts Payable Income Taxes Payable Interest Payable Notes Payable Long Term Bonds Payable Discount on Bonds Paya ble 1501 69,300.00 25,000.00 7,500.00 4,778.00 200,000.00 800,000.00 2001 2005 2031 2101 2301 2303 23,900.00 3001 Preferred Stock 400,000.00 105,000.00 15,000.00 3011 Common Stock Paid in Capitalin Excess of Par: Proffered Paid in Capital in Excess of Par: Common 3101 3111 166,250.00 3121 Paidin Capital Treasury Stock 3300 Retained Earnings Treasury Stock Sales Revenue 72,000.00 53,940.00 3351 72,000.00 4001 139,000.00 4002 Sales Discount B00.00 4003 Sales Returns and Allowances 3,000.00 4101 S001 Interest Revenue Cast of Goods Sold 60.00 84,560.00 200.00 5010 Insurance Expense General 2,500.00 5012 Repairs Expense: Office 5015 Depreciation Expense: Building- General 5020 Depreciation Expense: Offi ce Equipment 750.00 2,500.00 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 1,200.00 1,500.00 15,000.00 Ofice Payroll Tax Expense 1,200.00 6005 Depreciation Expense: Store Equipment 800.00 6010 Amortization Expense: Patents - General 700.00 6015 Sales Salaries Expense 10,000.00 6020 Sales Payroli Tax Expense Utilities Expense: Store Delivery Expense - General 6030 Repairs Expense: Store Bad Debts Expense Selling 800.00 6022 1,100.00 6025 1,000.00 800.00 6040 460.00 7001 Interest Expense 5,878.00 2,068,038.00 2,068,038.00 Be Prepared Adjusted Trial Balance January 31, 2018 Account ID Account Description Debits Credits Cash 687,490.00 1001 1021 Accounts Receivable 1022 Allowance for Daubtful Accounts 23,000.00 460.00 1027 Interest Receivable 60.00 1031 Notes Receivable 10,000.00 5,190.00 10,000.00 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies Prepaid insurance 300.00 1125 2.800.00 1401 Land 414,250.00 1411 Building 400,000.00 Accum Dep: Building Ofice Equipment 1412 45,750.00 1431 90,000.00 1432 Accum Dep: Office Equipment Store Equipment 17,500.00 1451 125,000.00 1452 15,800.00 Accum Dep: Store Equipment Patents Accounts Payable Income Taxes Payable Interest Payable Notes Payable Long Term Bonds Payable Discount on Bonds Paya ble 1501 69,300.00 25,000.00 7,500.00 4,778.00 200,000.00 800,000.00 2001 2005 2031 2101 2301 2303 23,900.00 3001 Preferred Stock 400,000.00 105,000.00 15,000.00 3011 Common Stock Paid in Capitalin Excess of Par: Proffered Paid in Capital in Excess of Par: Common 3101 3111 166,250.00 3121 Paidin Capital Treasury Stock 3300 Retained Earnings Treasury Stock Sales Revenue 72,000.00 53,940.00 3351 72,000.00 4001 139,000.00 4002 Sales Discount B00.00 4003 Sales Returns and Allowances 3,000.00 4101 S001 Interest Revenue Cast of Goods Sold 60.00 84,560.00 200.00 5010 Insurance Expense General 2,500.00 5012 Repairs Expense: Office 5015 Depreciation Expense: Building- General 5020 Depreciation Expense: Offi ce Equipment 750.00 2,500.00 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 1,200.00 1,500.00 15,000.00 Ofice Payroll Tax Expense 1,200.00 6005 Depreciation Expense: Store Equipment 800.00 6010 Amortization Expense: Patents - General 700.00 6015 Sales Salaries Expense 10,000.00 6020 Sales Payroli Tax Expense Utilities Expense: Store Delivery Expense - General 6030 Repairs Expense: Store Bad Debts Expense Selling 800.00 6022 1,100.00 6025 1,000.00 800.00 6040 460.00 7001 Interest Expense 5,878.00 2,068,038.00 2,068,038.00

Answer rating: 100% (QA)

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