Brothers Herm and Steve Hargenrater began operations of their tool and die shop (H & H Tool) on January 1, 1987, in Meadville, PA. The annual reporting period ends December 31. Assume that the trial balance on January 1, 2023, was as follows: H & H Tool Trial Balance on January 1, 2023 (dollars in millions, except par value) Debit Credit Cash 9 Accounts receivable 8 Supplies 31 Land Equipment 98 Accumulated depreciation (on equipment) 17 Other noncurrent assets (not detailed to simplify) 12 Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Long-term notes payable Common stock (8 million shares, $0.50 par value) 5 Additional paid-in capital 100 Retained earnings 36 Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 158 158 Transactions during 2023 follow. All dollars are in millions, except per share amounts: Borrowed $24 cash on a 5-year, 10 percent note payable, dated March 1, 2023. Sold 6 million additional shares of common stock for cash at $1 market value per share on January 1, 2023. Purchased land for a future building site; paid cash, $23. Earned $339 in revenues for 2023, including $69 on credit and the rest in cash. Incurred $109 in wages expense and $45 in miscellaneous expenses for 2023, with $40 on credit and the rest paid in cash. Collected accounts receivable, $44. Purchased other noncurrent assets, $18 cash. Purchased supplies on account for future use, $43. Paid accounts payable, $42. Declared cash dividends on December 1, $24. Signed a three-year $49 service contract to start February

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Brothers Herm and Steve Hargenrater began operations of their tool and die shop (H & H Tool) on January 1, 1987, in Meadville, PA. The annual reporting period ends December 31. Assume that the trial balance on January 1, 2023, was as follows:

	Debit	Credit
H & H Tool Trial Balance on January 1, 2023 (dollars in millions, except par value)
Cash	9
Accounts receivable	8
Supplies	31
Land
Equipment	98
Accumulated depreciation (on equipment)		17
Other noncurrent assets (not detailed to simplify)	12
Accounts payable
Wages payable
Interest payable
Dividends payable
Income taxes payable
Long-term notes payable
Common stock (8 million shares, $0.50 par value)		5
Additional paid-in capital		100
Retained earnings		36
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals	158	158

Transactions during 2023 follow. All dollars are in millions, except per share amounts:

Borrowed $24 cash on a 5-year, 10 percent note payable, dated March 1, 2023.
Sold 6 million additional shares of common stock for cash at $1 market value per share on January 1, 2023.
Purchased land for a future building site; paid cash, $23.
Earned $339 in revenues for 2023, including $69 on credit and the rest in cash.
Incurred $109 in wages expense and $45 in miscellaneous expenses for 2023, with $40 on credit and the rest paid in cash.
Collected accounts receivable, $44.
Purchased other noncurrent assets, $18 cash.
Purchased supplies on account for future use, $43.
Paid accounts payable, $42.
Declared cash dividends on December 1, $24.
Signed a three-year $49 service contract to start February 1, 2024.
Paid the dividends in (j) on December 31.

Data for adjusting entries:

Supplies counted on December 31, 2023, $34.
Depreciation for the year on the equipment, $19.
Interest accrued on notes payable (to be computed).
Wages earned by employees since the December 24 payroll but not yet paid, $21.
Income tax expense, $18, payable in 2024

M.yy viiping
q. Income tax expense, $18, payable in 2024.
Requirement
General
Journal
General
Ledger
LIV
Trial Balance
a. Compute the current ratio for 2023.
Current ratio
b. Compute the total asset turnover ratio for 2023.
Total asset turnover
c. Compute the net profit margin ratio for 2023.
Net profit margin
NUI 2
%
Puyivi
Income
Statement
Statement
of SE
<Stmt of Cash Flows
yu
Mi, 1.
Compute the applicable ratios shown below for 2023.
Note: Round your answers for a. and b. to 2 decimal places. Enter your answer for c. as
decimal place (i.e. 0.288 should be entered as 28.8).
Balance
Sheet
C
Analysis >

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