5:01 Ces Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations. a. Received four shareholders' contributions totaling $29,200 cash to form the corporation; issued 400 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,750 per month (recorded as prepaid expenses). c. Purchased and received candy inventory for $5,700 on account, due in 60 days. d. Purchased supplies for $1,430 cash. e. Negotiated and signed a two-year $16,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $2,950 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $400 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,500; $2,665 was in cash and the rest on accounts receivable. 1. The cost of the candy sold in (h) above was $1,700. (Reminder. Used inventory is an expense called Cost of Goods Sold.) J. Made a $570 payment on accounts payable. k. Incurred and paid employee wages of $1,700. 1. Collected accounts receivable of $195 from customers. m. Made a repair to one of the display cases for $100 cash. n. Made cash sales of $2,500 during the rest of the month. o. The cost of the candy sold in (n) above was $1,310. Required: 1 and 2. Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February, referencing each transaction in the accounts with the transaction letter. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28. 5. After three years in business, you are being evaluated for a promotion. One measure is how effectively you managed the sales and expenses of the business. The following data are available: 2025 2024 2023 Total assets Total liabilities Total stockholders' equity Net sales revenue Net incone $83,500 $52,500 $35,500 45,500 20,500 17,500 38,000 32,000 18,000 93,000 78,000 57,000 21,200 11,000 5,400 Debit Beginning balance Cash Ending balance 0 Credit Accounts Receivable Debit Credit Beginning balance Ending balance 0 Supplies Inventory Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Ending balance 0 Prepaid Expenses Equipment Debit Credit Debit Credit Beginning balance Beginning balance Debit Beginning balance Furniture and Fixtures: Ending balance Credit Debit Beginning balance Ending balance: Accounts Payable 0 Credit Notes Payable Common Stock Debit Credit Debit Credit Beginning balance Beginning balance Ending balance 0 Ending balance 0 Additional Paid-in Capital Sales Revenue Debit Credit Debit Credit Beginning balance Beginning balance Ending balance: Debit Cost of Goods Sold 0 Ending balance Credit Repairs Expense Debit Credit Debit Beginning balance Cost of Goods Sold Ending balance Debit Beginning balance Credit Advertising Expense Credit Ending balance 0 Repairs Expense Debit Credit Beginning balance Ending balance Wages Expense Debit Credit Beginning balance Ending balance 0 3:33 Prepare an unadjusted income statement at the end of the first month of operations ended February 28. KAYLEE'S SWEETS Income Statement (unadjusted) ces 0 Calculate the net profit margin ratio for each year. Note: Round your answers to 1 decimal place. Net Profit Margin Ratio 2025 % 2024 % 2023 % Do you think you should be promoted? Yes ONO