Saved Help Save & Exit Check P3-4 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio as a Manager LO3-4, 3-5, 3-6 [The following information applies to the questions displayed below) Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February the first month of operations. a. Received four shareholders' contributions totaling $28,300 cash to form the corporation; Issued 400 shares of $0.10 par value common stock. b. Pald three months' rent for the store at $1,700 per month (recorded as prepaid expenses). c. Purchased and received candy for $5,700 on account, due in 60 days. d. Purchased supplies for $1,430 cash. e. Negotiated and signed a two-year $15,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,300 (for recordkeeping and inventory trackingk used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $430 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,300; $2,635 was in cash and the rest on accounts receivable. The cost of the candy sold was $1,500. i. Made a $570 payment on accounts payable. J. Incurred and paid employee wages of $1,100. k. Collected accounts receivable of $145 from customers. 1. Made a repair to one of the display cases for $145 cash. m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2,010. 5. After three years in business, you are being evaluated for a promotion. One measure is how effectively you managed the sales and expenses of the business. The following data are available: Total assets Total liabilities Total stockholders' equity Net sales revenue Net income 2021 $85,500 46,000 39,500 92,500 21,900 2020 $53,000 19,500 33,500 83,000 10,900 2019 $38,500 20,500 18,000 56,500 4,400 "At the end of 2021, Kaylee decided to open a second store, requiring loans and inventory purchases prior to the store's opening in early 2022 5-a. Compute the net profit margin ratio for each year. (Round your answers to 1 decimal place.) Net Profit Margin Ratio 5% % 2021 2020 2019 % 5-b. Do you think you should be promoted? O Yes No