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Please prepare an unadjusted income statement and answer net profit margin ratio Check m 4 ! Part 3 of 4 Required information P3-6 (Algo) Analyzing
Please prepare an unadjusted income statement and answer net profit margin ratio
Check m 4 ! Part 3 of 4 Required information 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. 5 points 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): eBook G References 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 $ 18,094 13,806 1,677 318 2,490 1,910 3,182 2 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital Balance $ 2,599 1,089 1,304 815 3,920 2,359 1,237 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 customers, who paid $11,890 in cash and owed $39,104 on account. b. Purchased new equipment costing $3,854; signed a long-term note. c. Paid $12,064 cash to rent equipment and aircraft, with $6,286 for rent this year and the rest for rent next year. d. Spent $1,284 cash to repair facilities and equipment during the year. e. Collected $36,885 from customers on account. f. Repaid $360 on a long-term note (ignore interest). g. Issued 230 million additional shares of $0.10 par value stock for $37 (that's $37 million). h. Paid employees $14,526 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $12,864 cash. j. Used $7,500 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,204 on accounts payable. I. Ordered $130 in spare parts and supplies. P3-6 Part 3 3. Prepare an unadjusted income statement for the current year ended May 31. 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 %Step by Step Solution
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