Question
Accounts receivable $ 10,200 Accumulated depreciation 51,400 Cost of goods sold 123,000 Income tax expense 9,500 Cash 62,000 Net sales 191,000 Equipment 128,000 Selling, general,
Accounts receivable $ 10,200 Accumulated depreciation 51,400 Cost of goods sold 123,000 Income tax expense 9,500 Cash 62,000 Net sales 191,000 Equipment 128,000 Selling, general, and administrative expenses 31,000 Common stock (8,500 shares) 95,000 Accounts payable 12,300 Retained earnings, 1/1/22 27,800 Interest expense 5,500 Merchandise inventory 37,300 Long-term debt 40,000 Dividends declared and paid during 2022 11,000 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: 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 Breanna Incorporated. Based on the financial statements that you have prepared for part a, answer the questions in parts b-e. What is the company's average income tax rate? 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. What is the par value per share of common stock? What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)?
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