Line tollowing information applies to the questions displayed below. Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows the amounts are rounded to thousands of dollars to simplify): Debit Credit S7 3 3 10 $ 3 7 3 4 ow Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Service Revenue a eos 15 5 0 3 3 10 mmo $ 3 7 Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals 3 4 0 0 0 0 0 15 5 0 Oo 0 0 0 0 $30 $30 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $31 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $34 cash on July 2, 2018. c. Issued additional shares of common stock for $5 on July 3. d. Purchased software on July 4, $3 cash. e. Purchased supplies on July 5 on account for future use. $7. f. Recorded revenues on December 6 of $64, including $8 on credit and $56 received in cash. g. Recognized salaries and wages expense on December 7 of $39; paid in cash. h. Collected accounts receivable on December 8, $9. 1. Paid accounts payable on December 9, $10. J. Received a $3 cash deposit on December 10 from a hospital for & contract to start January 5, 2019. Data for adjusting journal entries on December 31: k. Amortization for 2018. $3. 1. Supplies of $3 were counted on December 31, 2018. m. Depreciation for 2018. $4. Data for adjusting journal entries on December 31: k. Amortization for 2018, $3. 1. Supplies of $3 were counted on December 31, 2018. m. Depreciation for 2018, $4. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $3. p. Income tax expense for 2018 was $4 and will be paid in 2019. 8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers thousands of dollars.) NORTHLAND PHYSICAL THERAPY NORTHLAND PHYSICAL THERAPY Post-Closing Trial Balance At December 31, 2018 (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notae Davahla (chort_term Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable 3 1 4 Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 4 Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals $ 0 $ 8 ***---* Req9A Req 98 Reg 9C How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) Net Income Net Profit Margin 96 RODA Req 9B > . wwwwww Req 9A Req 9B Reg 9C Is the business financed primarily by liabilities or stockholders' equity? Ostockholders' Equity O Liabilities wp- --- Reg 9A Req 9B Reg C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 (in thousands) Assets Liabilities Current Assets Cash Accounts Receivable Supplies Current Liabilities Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue Totabilt Required information Deferred Revenue Total Current Liabilities 0 Total Current Assets Equipment Accumulated Depreciation Software Accumulated Amortization Total Assets Stockholders' Equity Common Stock Retained Earnings 0 0 0 Total Liabilities and Stockholders' Equity $ Salaries and Wages Expense Supplies Expense Beg. Bal. (9) (O) Beg. Bal. (0) 39 42CE1 7CE1 End. Bal. End. Bal. 0 Interest Expense Income Tax Expense Beg. Bal (n) Beg. Bal (P) 1 CE1 4CE1 End. Bal End. Bal 0 3 End. Bal. 20 End. Bal. Retained Earnings Service Revenue Beg. Bal. Beg. Bal CE1 3CE1 64 64 (0) 0 End. Bal 3 End. Bal. Depreciation Expense Amortization Expense Beg. Bal. (m) Beg. Bal (k) 3CE1 4 4CE1 3 0 End. Bal 0 End, Bal. Interest Payable Income Taxes Payable Beg. Bal. Beg. Bal. (n) 4 (P) End. Bal End. Bal Deferred Revenue Common Stock 15 Beg. Bal. Beg. Bal 3(0) 5(c) 3 End. Bal. 20 End. Bal. Accumulated Amortization Accounts Payable Beg. Bal 3 4 Beg. Bal 10) 3(k) 10 7(e) End. Bal 6 1 End. Bal. Notes Payable Salaries and Wages Payable Beg. Bal Beg. Bal. 31 (a) 3(0) End. Bal 31 End. Bal 3 Innnm The DA Supplies Equipment 10 3 Beg. Bal. (e) Beg. Bal. (b) 34 End. Bal. 3 End, Bal. 44 Accumulated Depreciation 3 4(m) Software 7 Beg. Bal Beg. Bal (d) 3 End. Bal 7 End. Bal 10