2-22 (Algo) Prepare an income statement, balance sheet, and statement of changes in stockholders' equity; analyze results LO 2-2, 2-3, 2-4 The following information was obtained from the records of Shae Incorporated: Merchandise inventory Notes payable (long-term) Net sales. Buildings and equipment Selling, general, and administrative expenses. Accounts receivable. Common stock (25, 000 shares) Income tax expense $ 153,000 170,000 510, 000. 306,000 51,000. 76, 500 250,000 31, 620 Cash Retained earnings, 1/1/22 Accrued liabilities Cost of goods sold. Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2022 291, 009 153, 750 10, 200 306, 0001 137, 700. 47,600 51,000 19, 921 Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year ended December 31, 2022. There were no changes in paid-in capital during the year. Required: a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2022, and a balance sheet at December 31, 2022, for Shae Incorporated. Based on the financial statements that you have prepared for part a, answer the questions in parts b-e. b. What is the company's average income tax rate? c. What interest rate is charged on long-term debt? Assume that the year-end balance of long-term debt is representative of the average long-term debt account balance throughout the year. d. What is the par value per share of common stock? e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? Req A1 Req A2 Req A3 Req B to E Prepare an income statement for the year ended December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. SHAE INCORPORATED Income Statement For the Year Ended December 31, 2022 0 0 0 < Req A1 Req A2 > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare a statement of changes in stockholders' equity for the year ended December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. SHAE INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2022 Paid-in capital Retained earnings Beginning balance Ending balance Total stockholders' equity 0 $ 0 < Req A1 Req A3 > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare a balance sheet at December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. SHAE INCORPORATED Balance Sheet December 31, 2022 Total current assets Assets Total assets Liabilities Total liabilities $ 0 0 $ 0 Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity EA EA $ 0 $ 0 Req A1 Req A2 Req A3 Req B to E b. What is the company's average income tax rate? Note: Round your final answer to the nearest whole percentage. c. What interest rate is charged on long-term debt? Assume that the year-end balance of long-term debt is representative of the average long-term debt account balance throughout the year. Note: Round your final answer to the nearest whole percentage. d. What is the par value per share of common stock? Note: Round your final answer to the nearest whole Dollars. e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? Note: Round your final answer to the nearest whole percentage. b. Average income tax rate c. Interest rate d. Par value per share e. Dividend % % % < Req A3 Req B to E > Show less