Accounts receivable $ 10,300 Accumulated depreciation 51,100 Cost of goods sold 122,000 Income tax expense 9,000...

Accounts receivable	$	10,300
Accumulated depreciation		51,100
Cost of goods sold		122,000
Income tax expense		9,000
Cash		64,000
Net sales		206,000
Equipment		129,000
Selling, general, and administrative expenses		30,000
Common stock (8,600 shares)		98,000
Accounts payable		14,200
Retained earnings, 1/1/19		21,950
Interest expense		5,700
Merchandise inventory		38,600
Long-term debt		37,000
Dividends declared and paid during 2019		19,650

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:

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.
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)?

Expert Solution

ekkarill92 answered 10 months ago

Income Statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation...

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A company had net income of $226,932. Depreciation expense was $25,699. During the year, accounts receivable...

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Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Ac

Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Accumulated depreciation—equipment 20,000 Advertising Expense 4,500 Bonds payable, due December 31, 2024 260,000 Buildings 180,000 Capital stock, $1 par value 220,000 Cash 92,120 Commission Expense 8,400 Cost of Goods Sold 31,480 Depreciation Office 2,970 Equipment 75,500 Income Tax Expense 7,150 Income taxes payable 3,860 Insurance Expense Sales Auto 3,200 Interest Expense 1,550 Interest payable...

Inventories $150,000 Cost of Goods Sold $250,000 Administrative Expenses $50,000 Accumulated Depreciation $150,000 Sales $700,000 Depreciation...

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