Following are account balances (in millions of dollars) from a recent State Ex annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance $ 15,494 11, 206 1,417 188 2,230 1,650 2,792 4 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital Balance $ 1,949 959 1,044 557 3,530 2,099 847 These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1(the current year): a. Provided delivery service to customers, who paid $5,390 in cash and owed $28,704 on account. b. Purchased new equipment costing $3,594; signed a long-term note. c. Paid $9,464 cash to rent equipment and aircraft, with $4,336 for rent this year and the rest for rent next year. d. Spent $1,024 cash to repair facilities and equipment during the year. e. Collected $29,085 from customers on account. f. Repaid $230 on a long-term note (ignore interest). g. Issued 100 million additional shares of $0.10 par value stock for $24 (that's $24 million). h. Paid employees $11,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. j. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $944 on accounts payable. I. Ordered $104 in spare parts and supplies. 2. Prepare T-accounts for the current year from the preceding list; enter the ending balances from May 31 as the respective beginning balances for June 1 of the current year. For each transaction, record the current year's transaction effects in the T-accounts. Label each using the letter of the transaction. (Enter your answers in millions, not in dollars.) Cash Receivables Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Spare Parts, Supplies, and Fuel Prepaid Expenses Beg. bal. Beg. bal. End. bal. 0 End. bal. Other Current Assets Property and Equipment (net) Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Other Noncurrent Assets Accounts Payable Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Accrued Expenses Payable Other Current Liabilities Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Long-Term Notes Payable Other Noncurrent Liabilities Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Common Stock Additional Paid-in Capital Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Retained Earnings Delivery Service Revenue Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Rent Expense Repair Expense Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Wage Expense Spare Parts, Supplies, and Fuel Expense Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 3. Prepare an unadjusted income statement for the current year ended May 31. StateEx Income Statement (unadjusted) (in millions) 0 4. Compute the company's net profit margin ratio for the current year ended May 31. (Round your percentage answer to 1 decimal place (i.e., 32.1)). Net profit margin ratio %
