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.) Following are account balances (in Millions of dollars) from a recent StateEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year: 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 Account $ 16,694 Receivables 12,406 Other current anneta 1,537 Canh 240 Spare parts, supplies, and fuel 2,350 Other noncurrent liabilities 1,770 Other current liabilities 2,972 Additional Paid-in Capital Melance $2,249 1,019 1,164 678 3,710 2,219 1,027 These accounts are not necessarily in good order and have normal debitor 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 $8,390 in cash and owed $33,504 on account. b. Purchased new equipment costing $3,714; signed a long-term note. c. Paid $10,664 cash to rent equipment and aircraft, with $5,236 for rent this year and the rest for rent next year d. Spent $1,144 cash to repair facilities and equipment during the year. e. Collected $32,685 from customers on account. 1. Repaid $290 on a long-term note (ignore interest), g. Issued 160 million additional shares of $0.10 par value stock for $30 (that's $30 million h. Pald employees $12,776 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,764 cash. J. Used $7,150 in spare parts, supplies, and fuel for the aircraft and equipment during the year, k. Pald $1,064 on accounts payable. Ordered $116 in spare parts and supplies. 9 af 10 Next > 2 hote. c. Pald $10,664 cash to rent equipment and alrcraft, with $5,236 for rent this year and the rest for rent next year. d. Spent $1,144 cash to repair facilities and equipment during the year. e. Collected $32,685 from customers on account. f. Repaid $290 on a long-term note (ignore Interest). g. Issued 160 million additional shares of $0.10 par value stock for $30 (that's $30 million) h. Pald employees $12,776 for work during the year, 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,764 cash. J. Used $7,150 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Pald $1,064 on accounts payable. 1. Ordered $116 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 (.e., 32.1)). % Not profit margin ratio 80
