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Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) 2020. The annual reporting period ends December 31. The

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Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) 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): Account Titles Debit Credit Cash $4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 56 Accumulated Depreciation $1 Software 17 Accumulated Amortization Accounts Payable 6 Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable 68 Common Stock Retained Earnings 7 Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense 0 Interest Expense 0 Supplies Expense Totals $ 92 $ 92 OOOOOO 0 0 0 Transactions 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. g. Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $152 on December 8, including $36 on credit and $116 collected in cash. 1. Recognized salaries and wages expense on December 9, $81 paid in cash. 1. Collected accounts receivable on December 10, $20. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4. 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. o. Salaries and wages earned but not yet paid or recorded, $13 p. Income tax for the year was $9. It will be paid in 2022. Required: -a. How much net income did H & H Tool, Incorporated, generate during 2021? What was its net profit margin? -b. Is the company financed primarily by liabilities or stockholders' equity? 3-c. What is its current ratio

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