The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes payable (long-term) $108,000 120,000 Net sales 360,000 Buildings and equipment 216,000 Selling, general, and administrative expenses 36,000 Accounts receivable 54,000 Common stock (20,000 shares) 160,000 Income tax expense 25,560 es Cash 189,705 Retained earnings, 1/1/19 Accrued liabilities Cost of goods sold 98,400 7,200 Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2019 216,000 97,200 22,800 36,000 10,735 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: 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: 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 (i.e.. 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 B to E Prepare an income statement for the year ended December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Req A1 Req A2 Req A3 Req B to E Prepare an income statement for the year ended December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Net sales Cost of goods sold Gross profit Interest expense SHAE INC. Income Statement For the Year Ended December 31, 2019 0 0 0 $ 0 Req A1 Req A2 Req A3 Req B to E Prepare a statement of changes in stockholders' equity for the year ended December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) SHAE INC. Statement of Changes in Stockholders' Equity Paid-in capital Retained earnings Beginning balance For the Year Ended December 31, 2019 Ending balance Total stockholders' equity 0 $ 0 Req A1 Req A2 Req A3 Req B to E Prepare a balance sheet at December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Total current assets Assets SHAE INC. Balance Sheet December 31, 2019 $ $ 0 Total assets Liabilities Total current assets $ 0 Total assets $ 0 Liabilities Total liabilities $ 0 Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 < Req A2 Req B to E > Req A1 Req A2 Req A3 Req B to E b. What is the company's average income tax rate? (Round your final answer to the nearest whole percentage.) 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. (Round your final answer to the nearest whole percentage.) d. What is the par value per share of common stock? (Round your final answer to the nearest whole Dollars.) e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? (Round your final answer to the nearest whole percentage.) Show less A b. Average income tax rate- c. Interest rate: d. Par value per share e. Dividend % % %