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):

Account Titles	Debit			Credit
Cash	$	4
Accounts Receivable		4
Supplies		11
Land		0
Equipment		53
Accumulated Depreciation				$	7
Software		20
Accumulated Amortization					7
Accounts Payable					6
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					65
Retained Earnings					7
Service Revenue		0
Salaries and Wages Expense		0
Depreciation Expense		0
Amortization Expense		0
Income Tax Expense		0
Interest Expense		0
Supplies Expense		0
Totals	$	92		$	92

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $13 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $7.
3. Issued additional shares of common stock on April 3 for $31.
4. Purchased software on July 4, $12 cash.
5. Purchased supplies on account on October 5 for future use, $17.
6. Paid accounts payable on November 6, $14.
7. Signed a $30 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $146 on December 8, including $33 on credit and $113 collected in cash.
9. Recognized salaries and wages expense on December 9, $78 paid in cash.
10. Collected accounts receivable on December 10, $17.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $7.
12. Supplies counted on December 31, 2018, $11.
13. Depreciation for the year on the equipment, $7.
14. Interest of $2 to accrue on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $13.
16. Income tax for the year was $9. It will be paid in 2019.

1. 9-a. How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin?

2. 9-b. Is the company financed primarily by liabilities or stockholders equity?

3. 9-c. What is its current ratio?

$ 67 20 11 7 39 53 14 32 14 18 $ 162 6-c Balance Sheet December 31, 2018 Assets Cash Accounts Receivable Supplies Land Equipment Less: Accumulated depreciation Software Less: Accumulated Amortization Total Assets Liabilities and Stockholder's Equity Liabilities: Accounts Payable Notes Payable(short term) Salaries and Wages Payable Interest Payable Income Tax Payable Total liabilities Stockholder's Equity: Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ $ 9 13 13 2 9 46 96 20 116 $ 162 $ 146 91 6-a Income Statement For Year Ended December 31, 2018 Revenues: Service Revenue Expenses: Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Total Expenses Net Income (revenues - expenses) 7 7 9 2 17 133 $ 13