| 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 itemsreflect account balances at December 31, 2019, and that all incomestatement items reflect activities that occurred during the yearended December 31, 2019. There were no changes in paid-in capitalduring the year.
Required:
- Prepare an income statement and statement of changes instockholders' equity for the year ended December 31, 2019, and abalance sheet at December 31, 2019, for Breanna Inc. Based on thefinancial statements that you have prepared for parta, answer the questions in partsb-e.
- What is the company's average income tax rate?
- What interest rate is charged on long-term debt? Assume thatthe year-end balance of long-term debt is representative of theaverage 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 ofthe company's earnings is used for dividends)?
