Question

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 25,280 6,600 4,500 64,000 ok $ 4,600 79,000 16,700 $100, 300 nt $100,300 ences During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $10,200 ($850/month). January 9 Purchase additional supplies on account, $4,900. January 13 Provide services to customers on account, $26,900. January 17 Receive cash in advance from customers for services to be provided in the future, $5,100. January 20 Pay cash for salaries, $12,900. January 22 Receive cash on accounts receivable, $25,500. January 29 Pay cash on accounts payable, $5,400. The following information is available on January 31. • Rent for the month of January has expired. Supplies remaining at the end of January total $4,200. . By the end of January, $4,250 of services has been provided to customers who paid in advance on January 17. • Unpaid salaries at the end of January are $4.820.

Answer 1

a)

B)

Current Assest= $50,100

Current Liability=14,600

Current raion= Current Assest/Current Liabilty

= 50100.00/14600.00

= 3.43 or 3.43:1

C)According current Ration dynamite's working condition are very because stamdard current ration should be 2:1 while dynamite's ration are more than standard.