Please advise on if these are the correct placements and calculations:
The information on the following page was obtained from the records of Breanna, Inc.: Accounts receivable Accumulated depreciation $ 10,100 Cost of goods sold 51,600 Income tax expense 30,000 10.000 Cash 60,500 Sales 202,000 Equipment Selling, general, and administrative expenses 124,000 32.000 Common stock (8,900 shares) 16,000 Accounts payable Retained earnings, 1/1/16 11,400 23.450 Interest expense 5,100 Merchandise inventory 37,300 Long-term debt Dividends declared and paid during 2016 37,000 12.450 during the year. Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year ended December 31, 2016. There were no changes in paid-in capital Required: questions in parts b-e. a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2016, and a balance sheet at December 31, 2016, for Breanna, Inc. Based on the financial statements that you have prepared for part a, answer the BREANNA, INC. Income Statement For the Year Ended December 31, 2016 Sales $ 202,000 Cost of goods sold 130,000 Gross profit 2,000 Selling, general and administrative expenses 32,000 Operating income 10,000 Interest expense 5,100 Earning before taxes 34,900 Income tax expense 10,000 :Net income 24,900 BREANNA, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2016 Paid-in capital Common stock 96,000 Retained earnings Beginning balance 23,450 Net income 24,900 Less: Dividends declared and paid (12,450) Ending balance 35,900 Total stockholders' equity $ 131,900Balance Sheet December 31, 2016 Assets Cash 60,500 Accounts payable 10,100 Merchandise inventory 37,300 Total current assets S 107,900 Equipmen 124,000 Less: Accumulated depreciation (51,600) 72,400 Total assets 180,300 Liabilities Accounts payable 11,400 Long-term debt 37,000 Total liabilities $ 48,400 Stockholders' Equity Common stock $ 96,000 Retained earnings 23.450 : Total stockholders' equity $ 119,450 Total liabilities and stockholders' equity $ 167,850 b. What is the company's average income tax rate? Average income tax rate 29 : % c. What interest rate is charged on long-term debt? nterest rate d. What is the par value per share of common stock? Par value per shareTotal liabilities 48,400 Stockholders' Equity Common stock 96,000 Retained earnings 23,450 : Total stockholders' equity $ 119,450 Total liabilities and stockholders' equity 167,850 b. What is the company's average income tax rate? Average income tax rate 29 : % c. What interest rate is charged on long-term debt? Interest rate 14 : % d. What is the par value per share of common stock? Par value per share $ 11: e. What is the company's dividend policy (i.e., what proportion of the company's earnings are used for dividends)? Dividend 50 : %
