On January $1,2024,$ the general ledger of Tripley Company included the following account balances: Record each of the transactions listed above in the "General Journal" tab $($these are shown as items $1-13)$ assuming a

perpetual FIFO inventory system. Purchases and sales of inventory are recorded using the gross method for cash discounts.

Review the "General Ledger" and the "Trial Balance" tabs to see the effect of the transactions on the account balances.

Record adjusting entries on January $31$ in the "General Journal" tab $($these are shown as items $14-18).$

Review the adjusted "Trial Balance" as of January $31,2024,$ in the "Trial Balance" tab.

Prepare a multiple$-$step income statement for the period ended January $31,2024,$ in the "Income Statement" tab.

Prepare a classified balance sheet as of January $31,2024,$ in the "Balance Sheet" tab.

Record closing entries in the "General Journal" tab $($these are shown as items $19-20).$

Using the information from the requirements above, complete the "Analysi" tab. Analyze how well Tripley Company manages its inventory

$($a$)$ Calculate the inventory turnover ratio for the month of January. If the industry average of the inventory turnover ratio for the

month of January is $4\mathrm{.}5$ times, is the company selling its inventory more or less quickly than other companies in the same

industry?

$($b$)$ Calculate the gross profit ratio for the month of January. If the industry average gross profit ratio is $47\%,$ is the company

more or less profitable per dollar of sales than other companies in the same industry?

The gross profit ratio is:

The company is more profitable than other companies.

$($c$)$ Used together, what might the inventory turnover ratio and gross profit ratio suggest about the company's business

strategy? Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling a

lower volume of more expensive items?$\backslash$table$[[$Tripley Company$],[$Income Statement$],[$For the Month Ended January $31,2024],[$Revenues:$],[$Sales revenue,$,742,600,,],[$Sales returns,$\backslash$theta $^(5),(31,600),,],[,0,,],[,0,,],[$Net sales revenues,,,,$711,000],[$Cost of goods sold,$($V$),,,(457,000)],[$Gross profit,,,,$254,000],[$Operating expenses:$],[$Salaries expense,$\backslash$sigma $^(5),56,000,,],[$Utilities expense,$\backslash$theta $^(5),38,000,,],[$Bad debt expense,$^(2),6,960,,],[$Depreciation expense,$\backslash$theta $^(2),4,800,,],[,0,,],[$Total operating expe,,,,$105,760],[$Operating income,,,,$148,240],[$Other income $($expenses$)$:$],[$Interest revenue,$\backslash$theta $,0,,],[$Interest expense,$2,0,,],[,0,,0],[$Income before taxes,V$,,,148,240],[$Income tax expense,var$\backslash$theta $,,,7,800,],[$Net income,$($V$),,$$$,140,440]]$

The $$32,800$ beginning balance of inventory consists of $328$ units, each costing $$100.$ During January $2024,$ the company had the

following transactions:

January $2$ Lent $$48,000$ to an employee by accepting a $6\%$ note due in six months.

January $5$ Purchased $4,900$ units of inventory on account for $$539,000($ $$110$ each$)$ with terms $\frac{1}{10},\frac{n}{30}.$

January $8$ Returned $100$ defective units of inventory purchased on January $5.$

January $15$ Sold $4,700$ units of inventory on account for $$742,600($ $$158$ each$)$ with terms $\frac{2}{10},\frac{n}{30}.$

January $17$ Customers returned $200$ units sold on January $15.$ These units were initially purchased by the company on January $5.$ The

units are placed in inventory to be sold in the future.

January $20$ Received cash from customers on accounts receivable. This amount includes $$38,800$ from $2023$ plus amount receivable on

sale of $4,100$ units sold on January $15.$

January $21$ Wrote off remaining accounts receivable from $2023.$

January $24$ Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from

purchase of $4,500$ units on January $5.$

January $28$ Paid cash for salaries during January, $$56,000.$

January $29$ Paid cash for utilities during January, $$38,000.$

January $30$ Paid dividends, $$5,800.$

Month$-$end adjusting entries:

a$.$ Of the remaining accounts receivable, the company estimates that $10\%$ will not be collected.

b$.$ Accrued interest revenue on notes receivable for January.

c$.$ Accrued interest expense on notes payable for January.

d$.$ Accrued income taxes at the end of January for $$7,800.$

e$.$ Depreciation on the building, $$4,800.$