Problem 2 22 (Algo) Prepare an income statement, balance sheet, and statement of changes in stockholders' equity analyze results LO 2 2, 2 3, 2 4 The following information was obtained from the records of Shae Incorporated Merchandise inventory $ 72,000 Notes payable (long term) 80,000 Net sales 240,000 Buildings and equipment 144,000 Selling, general, and administrative expenses 24,000 Accounts receivable 36,000 Common stock (20,000 shares) 80,000 Income tax expense 19,200 Cash 91,120 Retained earnings, 1 1 22 49,200 Accrued liabilities 4,800 Cost of goods sold 144,000 Accumulated depreciation 64,800 Interest expense 8,000 Accounts payable 24,000 Dividends declared and paid during 2022 4,480 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 Shae Incorporated Based on the financial statements that you have prepared for part a, answer the questions in parts be 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) 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 Shae 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 (i e , what proportion of the company's earnings is used for dividends) Complete this question by entering your answers in the tabs below Prepare a balance sheet at December 31, 2022, for Shae Incorporated Note Enter decreases with a minus sign to indicate a negative financial statement effect

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Problem 2-22 (Algo) Prepare an income statement, balance sheet, and statement of changes in stockholders' equity; analyze results LO 2-2, 2-3, 2-4 The following information

Problem 2-22 (Algo) Prepare an income statement, balance sheet, and statement of changes in stockholders' equity; analyze results LO 2-2, 2-3, 2-4

The following information was obtained from the records of Shae Incorporated:

Merchandise inventory	$ 72,000
Notes payable (long-term)	80,000
Net sales	240,000
Buildings and equipment	144,000
Selling, general, and administrative expenses	24,000
Accounts receivable	36,000
Common stock (20,000 shares)	80,000
Income tax expense	19,200
Cash	91,120
Retained earnings, 1/1/22	49,200
Accrued liabilities	4,800
Cost of goods sold	144,000
Accumulated depreciation	64,800
Interest expense	8,000
Accounts payable	24,000
Dividends declared and paid during 2022	4,480

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 Shae Incorporated. Based on the financial statements that you have prepared for part a, answer the questions in parts be.
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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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 Shae 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 (i.e., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Prepare a balance sheet at December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect