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 Unadjusted Trial Balance January 31, 2018
	Debit			Credit
Cash	$	9,500
Merchandise inventory		12,500
Store supplies		5,800
Prepaid insurance		2,300
Store equipment		42,700
Accumulated depreciationStore equipment				$	17,550
Accounts payable					13,000
Common stock					3,600
Retained earnings					18,000
Dividends		2,150
Sales					114,600
Sales discounts		1,850
Sales returns and allowances		2,150
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		27,900
Insurance expense		0
Rent expense		12,000
Store supplies expense		0
Advertising expense		9,900
Totals	$	166,750		$	166,750

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.

Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,850.
2. Expired insurance, an administrative expense, for the fiscal year is $1,450.
3. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.
4. 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.

Problem 4-5A Part 4

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018. (Round your answers to 2 decimal places.)