Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The information on the following page was obtained from the records of Breanna Inc.. Accounts receivable Accumulated depreciation $ 10,300 50, 900 128,000 Cost
The information on the following page was obtained from the records of Breanna Inc.. Accounts receivable Accumulated depreciation $ 10,300 50, 900 128,000 Cost of goods sold Income tax expe 9,000 Cash 62,000 Net sales 206,000 Equipment 124.000 Selling geral, and administrative expenses 40,000 Common stock (8,800 shares) 96,000 Accounts payable 10,000 Retained earnings, 1/1/19 26,700 5.200 38.200 39.000 11,900 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2019 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 Breanna 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)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started