Reference no: EM132378547

Required information

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.

NELSON COMPANY
Unadjusted Trial Balance
January 31

	Debit	Credit
Cash Merchandise inventory Store supplies Prepaid insurance Store equipment	$ 11,950 14,000 5,400 2,300 42,700
Accumulated depreciation-Store equipment		$ 16,300
Accounts payable		15,000
Common stock		3,000
Retained earnings		27,000
Dividends	2,050
Sales		115,200
Sales discounts	1,950
Sales returns and allowances	2,150
Cost of goods sold	38,000
Depreciation expense-Store equipment	0
Sales salaries expense	14,300
Office salaries expense	14,300
Insurance expense	0
Rent expense-Selling space	9,000
Rent expense-Office space	9,000
Store supplies expense	0
Advertising expense	9,400
Totals	$176,500	$176,500

Additional Information:

a. Store supplies still available at fiscal year-end amount to $3,000.

b. Expired insurance, an administrative expense, is $1,750 for the fiscal year.

c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.

d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end.

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