Use the Multi-Step Income Statement and the Comparative Balance Sheet to prepare the following ratios for January 2015:

1. Current Ratio

2. Acid-Test Ratio

3. Debt Ratio

4. Profit Margin Ratio

5. Gross Margin Ratio

(Comparative Balance Sheet)

ABJ, Inc. Comparative Balance Sheet December 2014 and January 2015 2014 (in millions) 2015 Assets Current Assets $423,615.00 $125,200.00 Cash and cash equivalents $36,000.00 Accounts receivable, net $25,000.00 $0.00 $100.00 Interest receivable $0.00 $15,000.00 Notes receivable $7,200.00 Merchandise Inventory $27,500.00 $0.00 $8,000.00 Store Supplies S50000 $1,200.00 Office Supplies $1,600.00 $2,800.00 Prepaid Insurance $481,015.00 Total current assets $192,700.00 Plant Assets $375,000.00 175,000.00 Property/Land $425,000.00 $425,000.00 Building Less accumulated depreciation building $50,000.00 S40,000.00 $70,000.00 $70,000.00 Office equipment Less accumulated depreciation office equipment $17,500.00 $15,000.00 Store equipment $95,000.00 $75,000.00 Less accumulated depreciation store equipment $25,800.00 $25,000.00 $65,000.00 Patents $65,800.00 $936,700.00 $730,800.00 Total plant assets $1,417,715.00 $923,500.00 Total assets