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Following are selected account balances (in millions of dollars) from a recent UPS annual report, followed by several typical transactions. Assume that the following are

Following are selected account balances (in millions of dollars) from a recent UPS annual report, followed by several typical transactions. Assume that the following are account balances on December 31 (end of the prior fiscal year):

Account Balance

Account

Balance
Property, plant, and equipment (net) $18,094 Receivables $2,599
Retained earnings 13,806 Other current assets 1,089
Accounts payable 1,677 Cash 1,304
Prepaid expenses 318 Spare parts, supplies, and fuel 815
Accrued expenses payable 2,490 Other non-current liabilities 3,920
Long-term notes payable 1,910 Other current liabilities 2,359
Other non-current assets 3,182 Additional Paid-in Capital 1,237
Common stock ($0.01 par value) 2

These accounts are not necessarily in good order and have normal debit or credit balances. (Note: Because these are not all of UPS's accounts, these will not balance in a trial balance.) Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning January 1 (the current year):

  1. Provided delivery service to customers, who paid $11,890 in cash and owed $39,104 on account.
  2. Purchased new equipment costing $3,854; signed a long-term note.
  3. Paid $12,064 cash to rent equipment and aircraft, with $6,286 for rent this year and the rest for rent next year (a prepaid expense).
  4. Spent $1,284 cash to repair facilities and equipment during the year.
  5. Collected $36,885 from customers on account.
  6. Repaid $360 on a long-term note (ignore interest).
  7. Issued 200 million additional shares of $0.01 par value stock for $37 (thats $37 million).
  8. Paid employees $14,526 for work during the year.
  9. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $12,864 cash.
  10. Used $7,500 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
  11. Paid $1,204 on accounts payable.Ordered $130 in spare parts and supplies.

Compute the company's net profit margin ratio for the current year ended December 31.image text in transcribed

\begin{tabular}{|l|l|} \hline Net profit margin ratio & \\ \hline \end{tabular}

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