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 [The following information applies to the questions displayed below.) 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): Balance $ 2,299 1,029 1,184 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 $ 16,894 12,606 1,557 258 2,370 1,790 3,002 1 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital 694 3,740 2,239 1,057 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 $8,890 in cash and owed $34,304 on account. b. Purchased new equipment costing $3,734; signed a long-term note. c. Paid $10,864 cash to rent equipment and aircraft, with $5,386 for rent this year and the rest for rent next year. d. Spent $1,164 cash to repair facilities and equipment during the year. e. Collected $33,285 from customers on account. f. Repaid $300 on a long-term note (ignore interest). g. Issued 170 million additional shares of $0.10 par value stock for $31 (that's $31 million). h. Paid employees $13,026 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $11,064 cash. j. Used $7,200 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,084 on accounts payable. I. Ordered $118 in spare parts and supplies. P3-6 Part 4 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 % P3-6 Part 3 3. Prepare an unadjusted income statement for the current year ended May 31. State Ex Income Statement (unadjusted) (in millions) 0