Problem 2-20 (Algo) Prepare an income statement, balance sheet, stockholders' equity; analyze results LO 2, 3, 4 The following information was obtained from the records of Shae Inc.: Merchandise inventory $144,000 Notes payable (long-term) 160,000 Net sales 480,000 Buildings and equipment. 288,000 Selling, general, and administrative expenses 48,000 Accounts receivable 72,000 Common stock (23,000 shares) 230,000 Income tax expense 30,720 Cash 268,768 Retained earnings, 1/1/19 141,450 Accrued liabilities 9,600 Cost of goods sold 288,000 Accumulated depreciation 129,600 Interest expense 41,600 Accounts payable 48,000 17,562 Dividends declared and paid during 2019 Except as otherwise indicated, assume that all balance sheet items reflect account balances abDecember 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: a. 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 Shae Inc. 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)? Dray 8 of 8 Next