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): Credit Debit $ 3 5 12 0 69 $ 6 24 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) 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 4 5 0 0 0 0 90 8 0 0 0 0 0 $113 $113 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $23. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $178 on December 8, including $49 on credit and $129 collected in cash. i. Recognized salaries and wages expense on December 9, $94 paid in cash. j. Collected accounts receivable on December 10, $33. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4. 1. Supplies counted on December 31, 2018, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2019. No Date General Journal Debit Credit 1 Mar 01, 2018 12 Cash Notes Payable (short-term) 12 2 Mar 02, 2018 Land 9 Cash 9 3 Apr 03, 2018 23 Cash Common Stock 23 4 Jul 04, 2018 Software 10 Cash 10 5 Oct 05, 2018 18 Supplies Accounts Payable 18 6 Nov 06, 2018 13 Accounts Payable Cash 13 7 Nov 07, 2018 No Journal Entry Required 8 Dec 08, 2018 Cash 129 49 Accounts Receivable Service Revenue 178 9 Dec 09, 2018 94 Salaries and Wages Expense Cash 94 10 Dec 10, 2018 Cash 33 Accounts Receivable 33 11 4 Dec 31, 2018 Amortization Expense Accumulated Amortization 4 12 8 Dec 31, 2018 Supplies Expense Supplies 8 13 6 Dec 31, 2018 Equipment Accumulated Depreciation Equipment 6 14 Dec 31, 2018 1 Interest Expense Interest Payable 1 15 12 Dec 31, 2018 Salaries and Wages Expense Salaries and Wages Payable 12 16 Dec 31, 2018 8 Income Tax Expense Income Tax Payable 8 17 Dec 31, 2018 8 Income Tax Expense Income Tax Payable 8 H & H TOOL, INC. Income Statement For the Year Ended December 31, 2018 (in thousands) Revenues Service Revenue $ 178 0 178 106 0 Total Revenues Expenses Salaries and Wages Expense Depreciation Expense Amortization Expense Interest Expense Supplies Expense Income Tax Expense 41 1 B 16 ol Total Expenses Net Income 135 43 $ Post-closing e Statement H & H TOOL, INC. Statement of Retained Earnings For the Year Ended December 31, 2018 (in thousands) Balance, January 1, 2018 Add: Net Income Less: Dividends Balance, December 31, 2018 $ 43 14 in Post-closing How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? (Round "Net Profit Margin" to 1 decimal place.) Net income Net Profit Margin $ 43 % Is the company financed primarily by liabilities or stockholders' equity? Stockholders' Equity What is its current ratio? (Round your answer to 2 decimal places.) Current Ratio
