The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes payable (long-term) Net sales Buildings and equipment Selling, general, and administrative expenses Accounts receivable Common stock (20,000 shares) Income tax expense Cash Retained earnings, 1/1/19 Accrued liabilities Cost of goods sold Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2019 $ 139,500 155,000 465,000 279,000 46,500 69,750 220,000 30,150 256,866 135,380 9,309 279, 280 125,550 39,000 46, See 16,884 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 Shoe Inc. Based on the financial statements that you have prepared for parte, 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 shore of common stock? e. What is the company's dividend policy Cie., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Reg A3 Reg B to E Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Reg 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.) SHAE INC. Income Statement For the Year Ended December 31, 2019 RAGA Reg A2 > yu Hichiges in paio in capital 2 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 policylie., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req AI Reg A2 Reg A3 Reg 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 For the Year Ended December 31, 2019 Paid-in capital Retained earnings Beginning balance Ending balance Total stockholders equity Reg A1 Reg A2 Reg A3 Reg B to E Prepare a balance sheet at December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indic financial statement effect.) SHAE INC. Balance Sheet December 31, 2019 Assets Total current assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 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. Reg A1 Reg A2 Red A3 Reg 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 % b. Average income tax rate Interest rate d. Par value per share e Dividend 96
