Brothers Mike and Tim Hargen began operations of their tool and die shop (H H Tool, Inc ) on January 1, 2016 The annual reporting period ends December 31 The trial balance on January 1, 2017, follows Account Titles Debit Credit Cash 6,000 Accounts receivable 5,000 Supplies 14,000 Land Equipment 81,000 Accumulated depreciation (on equipment) 11,000 Other assets (not detailed to simplify) 10,000 Accounts payable Wages payable Interest payable Income taxes payable Long term notes payable Common stock (8,000 shares, $ 50 par value) 4,000 Additional paid in capital 83,000 Retained earnings 18,000 Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Remaining expenses (not detailed to simplify) Totals 116,000 116,000 Transactions during 2017 follow Borrowed $15,000 cash on a 5 year, 8 percent note payable, dated March 1, 2017 Purchased land for a future building site on March 15, 2017 paid cash, $14,000 Earned $239,000 in revenue Transactions dated August 30, 2017 , including $52,000 on credit and the rest in cash Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2017 Incurred $120,000 in remaining expenses for 2017, invoices dated October 15, 2017, including $23,000 on credit and the rest paid in cash Collected accounts receivables on November 10, 2017, $37,000 Purchased other assets on November 15, 2017, $14,000 cash Purchased supplies on account for future use on December 1, 2017, $26,000 Paid accounts payable on December 15, 2017, $24,000 Signed a three year $32,000 service contract on December 17, 2017 to start February 1, 2018 Declared and paid cash dividends on December 20, 2017, $24,000 Data for adjusting entries Supplies counted on December 31, 2017, $17,000 Depreciation for the year on the equipment, $13,000 Interest accrued on notes payable (to be computed) Wages earned by employees since the December 24 payroll but not yet paid, $16,000 Income tax expense, $12,000, payable in 2018 1, Identify the type of transaction for ( a ) through ( k ) for the statement of cash flows (O for operating, I for investing, F for financing), and the direction and amount of the effect (List cash outflows as negative amounts For transactions with no effect, choose NE ) 2 Prepare the closing entry on December 31, 2017 (If no entry is required for a transaction event, select No journal entry required in the first account field After recording this closing entry, a Compute the current ratio for 2017 (Round your answer to 2 decimal places ) b Compute the total asset turnover ratio for 2017 (Round your answer to 2 decimal places ) c Compute the net profit margin ratio for 2017 (Enter your answer as a percentage rounded to 1 decimal place (i e 0 123 should be entered as 12 3) )

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Brothers Mike and Tim Hargen began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting

Brothers Mike and Tim Hargen began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2017, follows:

Account Titles	Debit		Credit
Cash		6,000
Accounts receivable		5,000
Supplies		14,000
Land
Equipment		81,000
Accumulated depreciation (on equipment)				11,000
Other assets (not detailed to simplify)		10,000
Accounts payable
Wages payable
Interest payable
Income taxes payable
Long-term notes payable
Common stock (8,000 shares, $.50 par value)				4,000
Additional paid-in capital				83,000
Retained earnings				18,000
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Remaining expenses (not detailed to simplify)
Totals		116,000		116,000

Transactions during 2017 follow:

Borrowed $15,000 cash on a 5-year, 8 percent note payable, dated March 1, 2017.
Purchased land for a future building site on March 15, 2017; paid cash, $14,000.
Earned $239,000 in revenue. Transactions dated August 30, 2017 , including $52,000 on credit and the rest in cash.
Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2017.
Incurred $120,000 in remaining expenses for 2017, invoices dated October 15, 2017, including $23,000 on credit and the rest paid in cash.
Collected accounts receivables on November 10, 2017, $37,000.
Purchased other assets on November 15, 2017, $14,000 cash.
Purchased supplies on account for future use on December 1, 2017, $26,000.
Paid accounts payable on December 15, 2017, $24,000.
Signed a three-year $32,000 service contract on December 17, 2017 to start February 1, 2018.
Declared and paid cash dividends on December 20, 2017, $24,000.

Data for adjusting entries:

Supplies counted on December 31, 2017, $17,000.
Depreciation for the year on the equipment, $13,000.
Interest accrued on notes payable (to be computed).
Wages earned by employees since the December 24 payroll but not yet paid, $16,000.
Income tax expense, $12,000, payable in 2018.

1, Identify the type of transaction for (a) through (k) for the statement of cash flows (O for operating, I for investing, F for financing), and the direction and amount of the effect. (List cash outflows as negative amounts. For transactions with no effect, choose "NE".)

2. Prepare the closing entry on December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. After recording this closing entry,

-a. Compute the current ratio for 2017. (Round your answer to 2 decimal places.)

b. Compute the total asset turnover ratio for 2017. (Round your answer to 2 decimal places.)

-c. Compute the net profit margin ratio for 2017. (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).)