Brothers Herm and Steve Hargenrater began operations of their tool and die shop $(H$&$H$ Tool$)$ on January $1,1987,$ in Meadville, PA$.$ The annual reporting period ends December $31.$ Assume that the trial balance on January $1,2023,$ was as follows:

Transactions during $2023$ follow. All dollars are in millions, except number of shares and per share amounts:

a$.$ Borrowed $$15$ cash on a five$-$year, $8$ percent note payable, dated March $1,2023.$

b$.$ Sold $4$ million additional shares of common stock for cash at $$1$ market value per share on January $1,2023.$

c$.$ Purchased land for a future building site; paid cash, $$13.$

d$.$ Earned $$215$ in revenues for $2023,$ including $$52$ on credit and the rest in cash.

e$.$ Incurred $$89$ in wages expense and $$25$ in miscellaneous expenses for $2023,$ with $$20$ on credit and the rest paid in cash.

f$.$ Collected accounts receivable, $$34.$

g$.$ Purchased other noncurrent assets, $$15$ cash.

h$.$ Purchased supplies on account for future use, $$27.$

i$.$ Paid accounts payable, $$26.$

j$.$ Declared cash dividends on December $1,$$$25.$

k$.$ Signed a three$-$year $$33$ service contract to start February $1,2024.$

Paid the dividends in $($j$)$ on December $31.$

Data tor adjusting entries $($amounts in millions$)$:

$m.$ Supplies counted on December $31,2023,$ $$18.$

n$.$ Depreciation for the year on the equipment, $$10.$

o$.$ Interest accrued on notes payable $($to be computed$).$

p$.$ Wages earned by employees since the December $24$ payroll but not yet paid, $$16.$

q$.$ Income tax expense, $$11,$ payable in $2024.$

Required: $$

Set up T$-$accounts for the accounts on the trial balance and enter beginning balances.

Prepare journal entries for transactions $(a)$ through $($l$)$ and post them to the T$-$accounts.

Journalize and post the adjusting entries $(m)$ through $(q).$

Prepare an income statement $($including earnings per share rounded to two decimal places$),$ statement of stockholders' equity, and balance sheet.

Identify the type of transaction for $($a$)$ through $()$ for the statement of cash flows $($O for operating, I for investing, F for financing$)$ and the direction and amount of the effect.

Journalize and post the closing entry.

Compute the following ratios $($rounded to two decimal places$)$ for $2023$ and explain what the results suggest about the company:

a$.$ Current ratio

b$.$ Total asset turnover

c$.$ Net profit margin