Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several typical transactions:
Account Balance
Property and equipment (net) $18,294
Retained earnings $2,649
Accounts payable $1,099
Prepaid expenses $1,324
Accrued expenses payable $836
Long-term notes payable $3,950
Other noncurrent assets $2,379
Common stock ($0.10 par value) $1,267
Receivables $14,006
Other current assets $1,697
Cash $328
Spare parts, supplies, and fuel $2,510
Other noncurrent liabilities $1,930
Other current liabilities $3,212
Additional Paid-in Capital $3
These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred in the next fiscal year beginning June 1 of the current year:
a. Provided delivery service to customers, who paid $12,390 in cash and owed $39,904 on account.
b. Purchased new equipment costing $3.874 and signed a long-term note.
c. Paid $12,264 cash to rent equipment and aircraft, with $6,436 for rent this year and the rest for rent next year.
d. Spent $1,304 cash to repair facilities and equipment during the year.
e. Collected $37,485 from customers on account.
f. Repaid $370 on a long-term note (ignore interest).
g. Issued 240 million additional shares of $0.10 par value stock for $38 (that's $38 million).
h. Paid employees $14.776 for work during the year.
j. Used $7,550 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
k. Paid $1,224 on accounts payable.
l. Ordered $132 in spare parts and supplies.
Compute the company's net profit margin ratio for the current year ended May 31. Round your percentage answer to one decimal place (i.e., 32.1%).
