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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
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 Breanna 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 (ie, what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req to E Prepare a balance sheet at December 31, 2022, for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. BREANNA INCORPORATED Cash Accounts receivable Merchandise inventory Balance Sheet December 31, 2022 Assets 65,000 11.000 37.500 Total current assets 113,500 Equipment 126.000 Less: Accumulated depreciation 50,200 Total assets 113.500 Liabilities Accounts payable Long-term debt 12.400 38,000 Total liabilities Stockholders' Equity Common stock 97,000 Retained earnings 41.900 Total stockholders' equity Total liabilities and stockholders' equity $ 50,400 138,900 189 300
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