Question

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Debit Credit $ 3 5 12 $ 6 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals $94 $94

Answer 1

(9A) Net income of H&H= 12 $

Net profi margin= 12/144*100= 8.33 %

(9B) Stakeholder equity= 119 $

Liabilities= 68 $

So, the company is generally financed by stakeholder equity

(9C) Current ratio= 122/43= 2.84:1