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P3.6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3.5, 3.6 Following are

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P3.6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3.5, 3.6 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): 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 baiance 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): 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 (a prepaid expense). d. Spent $1,024 cash to repair facilities and equipment during the year. e. Collected $29,085 from customers on account. t. Repaid $230 on a long-term note (ignore interest). 9. Issued 200 million additional shares of $0.01 par value stock for $24 (that's $24 million). h. Paid employees $11,276 for work during the year. L. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. 1. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. 1. Paid $944 on accounts payable. L. Ordered \$104 in spare parts and supplies. Note: Enter your answers in millions, not in dollars. Complete this question by entering your answers in the tabs below. Compute the company's net profit margin ratio for the current year ended December 31. Note: Round your percentage answer to 1 decimal place (i.e, 32.1)

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