Question

Shows what is you have completed so far. It does not inc Required information The following information applies to the questions displayed below] 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 60 15 5 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-tern) 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 71 8 $95 $95 < Prox 15 120 ! Next >

Answer 1

Answer 9-a

Income Statement

Revenues:
Service revenue		160
Less: Expenses:
Salaries and wages expenses	97
Depreciation expenses	6
Amortization expenses	5
Income tax expense	8
Interest expense	1
Supplies expense (12 Trial balance + 18 Purchased - 10 on december 31)	20
Total expenses		137
Net Income		23

Net Income = 23

Net Profit Margin = Net income / Net sales * 100

= 23 / 160 * 100 = 14.38%

Answer 9-b

The company is financed primarily by Stockholders' Equity. (there are no long term liabilities which are required for financing)

Answer 9-c

Current Assets	Amount	Current Liabilities	Amount
Cash	45	Accounts payable	10
Account receivable	21	Notes payable (short term)	12
Supplies	10	Salaries and wages payable	12
Total	76	Interest payable	1
		Income tax payable	8
		Total	43

Current Ratio = Current Assets / Current Liabilities

= 76 / 43 =1.77

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