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:

H & H Tool
Trial Balance on January 1, 2023
(dollars in millions, except par value)
Account Titles	Debit	Credit
Cash	4
Accounts receivable	3
Supplies	12
Land
Equipment	79
Accumulated depreciation (on equipment)		9
Other noncurrent assets (not detailed to simplify)	8
Accounts payable
Wages payable
Interest payable
Dividends payable
Income taxes payable
Long-term notes payable
Common stock (8 million shares, $0.50 par value)		6
Additional paid-in capital		81
Retained earnings		10
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals	106	106

Transactions during 2023 follow. All dollars are in millions, except per share amounts:

1. Borrowed $20 cash on a 5-year, 12 percent note payable, dated March 1, 2023.
2. Sold 6 million additional shares of common stock for cash at $1 market value per share on January 1, 2023.
3. Purchased land for a future building site; paid cash, $12.
4. Earned $223 in revenues for 2023, including $50 on credit and the rest in cash.
5. Incurred $90 in wages expense and $26 in miscellaneous expenses for 2023, with $21 on credit and the rest paid in cash.
6. Collected accounts receivable, $35.
7. Purchased other noncurrent assets, $12 cash.
8. Purchased supplies on account for future use, $24.
9. Paid accounts payable, $22.
10. Declared cash dividends on December 1, $22.
11. Signed a three-year $30 service contract to start February 1, 2024.
12. Paid the dividends in (j) on December 31.

Data for adjusting entries:

1. Supplies counted on December 31, 2023, $15.
2. Depreciation for the year on the equipment, $11.
3. Interest accrued on notes payable (to be computed).
4. Wages earned by employees since the December 24 payroll but not yet paid, $14.
5. Income tax expense, $10, payable in 2024.

A. Use the drop-downs below to select the accounts that should be properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection in the drop-downs. Note: Include all balance sheet accounts, even those with zero balances.

B. Identify the type of transaction for (a) through (l) for the statement of cash flows and the direction and amount of the effect. Note: List cash outflows as negative amounts. For transactions with no effect, choose "No effect". Enter your answers in millions rather than in dollars (for example, 5 million should be entered as 5 rather than 5,000,000).

C. Compute the applicable ratios shown below for 2023. Note: Round your answers for a. and b. to 2 decimal places. Enter your answer for c. as a whole percentage rounded to one decimal place (i.e. 0.288 should be entered as 28.8).

\begin{tabular}{|c|c|c|} \hline Transaction & \begin{tabular}{c} Type of Effect \\ on Cash Flows \end{tabular} & \begin{tabular}{c} Direction and \\ Amount of \\ Effect \end{tabular} \\ \hline a. & & \\ \hline b. & & \\ \hline c. & & \\ \hline d. & & \\ \hline e. & & \\ \hline f. & & \\ \hline g. & & \\ \hline h. & & \\ \hline i. & & \\ \hline j. & & \\ \hline k. & & \\ \hline l. & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline a. Compute the current ratio for 2023. \\ \hline Current ratio \\ \hline b. Compute the total asset turnover ratio for 2023. \\ \hline Total asset turnover \\ \hline c. Compute the net profit margin ratio for 2023. \\ \hline Net profit margin & % \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{2}{|c|}{ B \& H TOOL } \\ \hline \multicolumn{2}{|c|}{ At December 31, 2023 } \\ \hline Assets & & Current liabilities: & \\ \hline Current assets: & & & \\ \hline & & & \\ \hline & & & \\ \hline Total current assets & & & \\ \hline Property, plant and equipment: & & & \\ \hline & & Total current liabilities & \\ \hline & & & \\ \hline Total assets & & & \\ \hline \end{tabular}