C4-2 (Algo) From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6]

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[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 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	$ 2
Accounts Receivable	6
Supplies	13
Land	0
Equipment	61
Accumulated Depreciation		$ 5
Software	15
Accumulated Amortization		6
Accounts Payable		4
Notes Payable (short-term)		0
Salaries and Wages Payable		0
Interest Payable		0
Income Tax Payable		0
Common Stock		73
Retained Earnings		9
Service Revenue	0
Salaries and Wages Expense	0
Depreciation Expense	0
Amortization Expense	0
Income Tax Expense	0
Interest Expense	0
Supplies Expense	0
Totals	$ 97	$ 97

Transactions and events during 2021 (summarized in thousands of dollars) follow:

Borrowed $11 cash on March 1 using a short-term note.

Purchased land on March 2 for future building site; paid cash, $8.

Issued additional shares of common stock on April 3 for $24.

Purchased software on July 4, $11 cash.

Purchased supplies on account on October 5 for future use, $19.

Paid accounts payable on November 6, $12.

Signed a $20 service contract on November 7 to start February 1, 2022.

Recorded revenues of $162 on December 8, including $41 on credit and $121 collected in cash.

Recognized salaries and wages expense on December 9, $86 paid in cash.

Collected accounts receivable on December 10, $25.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $6.

Supplies counted on December 31, 2021, $12.

Depreciation for the year on the equipment, $5.

Interest of $1 to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $13.

Income tax for the year was $7. It will be paid in 2022.

C4-2 (Algo) Part 9

Required:

9-a. How much net income did H & H Tool, Incorporated, generate during 2021? What was its net profit margin?

9-b. Is the company financed primarily by liabilities or stockholders equity?

9-c. What is its current ratio?

-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? -c. What is its current ratio? Complete this question by entering your answers in the tabs below. How much net income did H \& H Tool, Incorporated, generate during 2021? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) Complete this question by entering your answers in the tabs below. Is the company financed primarily by liabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. What is its current ratio? (Enter your answers in thousands of dollars.) 4. Prepare a statement of cash flows for the fiscal year ended August 31, 2021. (Cash outflows should be entered as negative amounts.) \begin{tabular}{|l|l|l|} \hline Cash Flows from Financing Activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}