Physical count ending merchandise inventory taken
Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)
Current ratio = Current assets / current liabilities
Prepaid insurance 1000 Current ratio: 14650/10000 1.465 1.47
Total $14650
Net sales $107750 Gross margin ratio: 67750/107750 = 0.63
COGS (40000)
