Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $7 Accounts Receivable 3 Supplies 3 Equipment 7 Accumulated Depreciation $ 2 Software 6 Accumulated Amortization 2 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Taxes Payable 0 Deferred Revenue 0 Common Stock 15 Retained Earnings 2 Service Revenue 0 Depreciation Expense 0 Amortization Expense 0 Salaries and Wages Expense 0 Supplies Expense 0 Interest Expense 0 Income Tax Expense 0 Totals $ 26 $ 26 Transactions during 2018 (summarized in thousands of dollars) follow: Borrowed $14 cash on July 1, 2018, signing a six-month note payable. Purchased equipment for $17 cash on July 2, 2018. Issued additional shares of common stock for $5 on July 3. Purchased software on July 4, $3 cash. Purchased supplies on July 5 on account for future use, $7. Recorded revenues on December 6 of $47, including $8 on credit and $39 received in cash. Recognized salaries and wages expense on December 7 of $22; paid in cash. Collected accounts receivable on December 8, $9. Paid accounts payable on December 9, $10. Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019. Data for adjusting journal entries on December 31: Amortization for 2018, $2. Supplies of $3 were counted on December 31, 2018. Depreciation for 2018, $4. Accrued interest of $1 on notes payable. Salaries and wages incurred but not yet paid or recorded, $4. Income tax expense for 2018 was $4 and will be paid in 2019. Complete this question by entering your answers in the tabs below. What is its current ratio? (Enter your answers in thousands of dollars.) Complete this question by entering your answers in the tabs below. Req 9A Req 9B Req 9C How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends
December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 7 Accounts
Receivable 3 Supplies 3 Equipment 7 Accumulated Depreciation $ 2 Software 6 Accumulated Amortization 2 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages
Payable 0 Interest Payable 0 Income Taxes Payable 0 Deferred Revenue 0 Common Stock 15 Retained Earnings 2 Service Revenue 0 Depreciation Expense 0 Amortization Expense 0
Salaries and Wages Expense 0 Supplies Expense 0 Interest Expense 0 Income Tax Expense 0 Totals $ 26 $ 26 Transactions during 2018 (summarized in thousands of dollars) follow:
Borrowed $14 cash on July 1, 2018, signing a six-month note payable. Purchased equipment for $17 cash on July 2, 2018. Issued additional shares of common stock for $5 on July
3. Purchased software on July 4, $3 cash. Purchased supplies on July 5 on account for future use, $7. Recorded revenues on December 6 of $47, including $8 on credit and $39
received in cash. Recognized salaries and wages expense on December 7 of $22; paid in cash. Collected accounts receivable on December 8, $9. Paid accounts payable on
December 9, $10. Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019. Data for adjusting journal entries on December 31:
Amortization for 2018, $2. Supplies of $3 were counted on December 31, 2018. Depreciation for 2018, $4. Accrued interest of $1 on notes payable. Salaries and wages incurred
but not yet paid or recorded, $4. Income tax expense for 2018 was $4 and will be paid in 2019. Complete this question by entering your answers in the tabs below. What is its
current ratio? (Enter your answers in thousands of dollars.) Complete this question by entering your answers in the tabs below. Req 9A Req 9B Req 9C How much net income did the
physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.)
Transcribed Image Text:Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 7 Accounts Receivable 3 Supplies 3 Equipment 7 Accumulated Depreciation $ 2 Software 6 Accumulated Amortization 2 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Taxes Payable 0 Deferred Revenue 0 Common Stock 15 Retained Earnings 2 Service Revenue 0 Depreciation Expense 0 Amortization Expense 0 Salaries and Wages Expense 0 Supplies Expense 0 Interest Expense 0 Income Tax Expense 0 Totals $ 26 $ 26 Transactions during 2018 (summarized in thousands of dollars) follow: Borrowed $14 cash on July 1, 2018, signing a six-month note payable. Purchased equipment for $17 cash on July 2, 2018. Issued additional shares of common stock for $5 on July 3. Purchased software on July 4, $3 cash. Purchased supplies on July 5 on account for future use, $7. Recorded revenues on December 6 of $47, including $8 on credit and $39 received in cash. Recognized salaries and wages expense on December 7 of $22; paid in cash. Collected accounts receivable on December 8, $9. Paid accounts payable on December 9, $10. Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019. Data for adjusting journal entries on December 31: Amortization for 2018, $2. Supplies of $3 were counted on December 31, 2018. Depreciation for 2018, $4. Accrued interest of $1 on notes payable. Salaries and wages incurred but not yet paid or recorded, $4. Income tax expense for 2018 was $4 and will be paid in 2019. Complete this question by entering your answers in the tabs below. What is its current ratio? (Enter your answers in thousands of dollars.) Complete this question by entering your answers in the tabs below. Req 9A Req 9B Req 9C How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.)
Complete this question by entering your answers in the tabs below.
Req 9A
Req 9B
Net Income
Net Profit Margin
Req 9C
How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net
Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.)
%
< Req 9A
Req 9B >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 9A Req 9B Net Income Net Profit Margin Req 9C How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) % < Req 9A Req 9B >
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