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Accounts receivable $ 10,300 Accumulated depreciation 51,100 Cost of goods sold 122,000 Income tax expense 9,000 Cash 64,000 Net sales 206,000 Equipment 129,000 Selling, general,
Accounts receivable | $ | 10,300 |
Accumulated depreciation | 51,100 | |
Cost of goods sold | 122,000 | |
Income tax expense | 9,000 | |
Cash | 64,000 | |
Net sales | 206,000 | |
Equipment | 129,000 | |
Selling, general, and administrative expenses | 30,000 | |
Common stock (8,600 shares) | 98,000 | |
Accounts payable | 14,200 | |
Retained earnings, 1/1/19 | 21,950 | |
Interest expense | 5,700 | |
Merchandise inventory | 38,600 | |
Long-term debt | 37,000 | |
Dividends declared and paid during 2019 | 19,650 | |
Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year ended December 31, 2019. 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, 2019, and a balance sheet at December 31, 2019, for Breanna Inc. 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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