Massa Company, which has been operating for three years, provides marketing consulting services worldwide for dot-com companies. You are a financial analyst assigned to report on the Massa management team's effectiveness at managing its assets efficiently. At the start of 2016 (its fourth year). Massa's T-account balances were as follows. Dollars are in thousands.

Required:
1. Using the data from these T-accounts. amounts for the following on January 1, 2016, were:
Assets $ ____ = Liabilities $ ____ + Stockholders' Equity $ _____
2. Enter in the T-accounts the following transactions for 2016:
a. Provided $58,000 in services to clients who paid $48,000 in cash and owed the rest on account.
b. Received $5,600 cash from clients on account.
c. Received $400 in cash as interest revenue on investments.
d. Paid $36,000 in wages, $12,000 in travel, $7,600 in rent, and $1,600 on accounts payable.
e. Received $ 1.600 in cash from clients in advance of services Massa will provide next year.
f. Received a utility bill for $800 for 2016 services.
g. Declared and paid $480 in dividends to stockholders.
3. Compute ending balances in the T-accounts to determine amounts for the following on December 31, 2016:
Revenues $ _____ - Expenses $ _____ = Net Income $ _____
Assets $ ______ = Liabilities $ ______ + Stockholders' Equity $ _____
4. Calculate the net profit margin ratio for 2016. If the company had a net profit margin ratio of 2.9 percent in 2015 and 2.5 percent in 2014, what does your computation suggest to you about Massa Company? What would you say in your report?

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Assets Cash Accounts Receivable Long-Term Investments 3,200 8,000 6,400 Liabilities Accounts Payable Unearned Revenue Long-Term Notes Payable 2,400 5,600 1,600 Stockholders' Equity Common Stock ($0.10 par value Retained Earnings 40003,200 Additional Paid-in Capital 800 Revenues Consulting Fee Revenue Interest Revenue Expenses Wages Expense Travel Expense Utilities Expense Rent Expense