Following are selected account balances (in millions of dollars) from a recent UPS annual report,...
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Accounting
Following are selected account balances (in millions of dollars) from a recent UPS annual report, followed by several typical transactions. Assume that the following are account balances on December 31 (end of the prior fiscal year):
Account
Balance
Account
Balance
Property, plant, and equipment (net)
$18,094
Receivables
$2,599
Retained earnings
13,806
Other current assets
1,089
Accounts payable
1,677
Cash
1,304
Prepaid expenses
318
Spare parts, supplies, and fuel
815
Accrued expenses payable
2,490
Other non-current liabilities
3,920
Long-term notes payable
1,910
Other current liabilities
2,359
Other non-current assets
3,182
Additional Paid-in Capital
1,237
Common stock ($0.01 par value)
2
These accounts are not necessarily in good order and have normal debit or credit balances. (Note: Because these are not all of UPS's accounts, these will not balance in a trial balance.) Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning January 1 (the current year):
Provided delivery service to customers, who paid $11,890 in cash and owed $39,104 on account.
Purchased new equipment costing $3,854; signed a long-term note.
Paid $12,064 cash to rent equipment and aircraft, with $6,286 for rent this year and the rest for rent next year (a prepaid expense).
Spent $1,284 cash to repair facilities and equipment during the year.
Collected $36,885 from customers on account.
Repaid $360 on a long-term note (ignore interest).
Issued 200 million additional shares of $0.01 par value stock for $37 (thats $37 million).
Paid employees $14,526 for work during the year.
Purchased spare parts, supplies, and fuel for the aircraft and equipment for $12,864 cash.
Used $7,500 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
Paid $1,204 on accounts payable.Ordered $130 in spare parts and supplies.
Compute the company's net profit margin ratio for the current year ended December 31.
\begin{tabular}{|l|l|} \hline Net profit margin ratio & \\ \hline \end{tabular}
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