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The Information on the following page was obtained from the records of Breanna Inc.: Accounts receivable Accumulated depreciation $ 11,000 51,600 Cost of goods
The Information on the following page was obtained from the records of Breanna Inc.: Accounts receivable Accumulated depreciation $ 11,000 51,600 Cost of goods sold 120,000 Income tax expense 8,500 Cash 62,000 Net sales 207,000 Equipment 121,000 Selling, general, and administrative expenses 35,000 Common stock (8,600 shares) Accounts payable 91,000 11,400 Retained earnings, 1/1/19 Interest expense Merchandise inventory Long-term debt 20,700 5,500 38,700 39,000 19,000 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)? 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 Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) BREANNA INC. Income Statement For the Year Ended December 31, 2019 < Req A1 $ Req A2 > 0 0
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