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Brothers Hamy and Herman Hausyerday began operations of their machine shop ( H & H Tool, Incorprated) on January 1 , 2020. The annual reporting
Brothers Hamy and Herman Hausyerday began operations of their machine shop ( H \& H Tool, Incorprated) on January 1 , 2020. The annual reporting period ends December 31 . The trial balance on January 1,2021 , follows (the amounts are rounded to thousands of dollars to simplify): Transections and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $7. c. Issued additional shares of common stock on April 3 for $28. d. Purchased software on July 4, \$12 cash. e. Purchased supplies on account on October 5 for future use, $17. f. Paid accounts payable on November 6,$14. 9. Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $170 on December 8 , including $45 on credit and $125 collected in cash. 1. Recognized salaries and wages expense on December 9,$90 paid in cash. f. Collected accounts receivable on December 10,$29. Dato for adjusting journal entries as of December 31 : k. Unrecorded amortization for the year on software, $5. 1. Supplies counted on December 31, 2021, \$11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable. 0. Salaries and wages earned but not yet paid or recorded, $11. p. Income tax for the year was $9. It will be paid in 2022 . Required: 9-a. How much net income did H&H Tool, Incorporated, generate during 2021 ? What was its net profit margin? 9-b. Is the company financed primarily by liabilities or stockholders' equity? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. How much net income did H \& H Tool, Incorporated, generate during 2021? What was its net profit margin? (Enter "Net) Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.)
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