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Please answer the following questions, I have attached screen shots of the charts!! ---->PLEASE REVIEW ALL THE MATERIAL BEFORE YOU COMMIT TO DOING IT. The following information was obtained from th
Please answer the following questions, I have attached screen shots of the charts!!
---->PLEASE REVIEW ALL THE MATERIAL BEFORE YOU COMMIT TO DOING IT.
The following information was obtained from the records of Shae Inc.:
Merchandise inventory
$88,000
Notes payable (long-term)
100,000
Net sales
300,000
Buildings and equipment
168,000
Selling, general, and administrative expenses
24,000
Accounts receivable
40,000
Common stock (14,000 shares)
70,000
Income tax expense
28,000
Cash
64,000
Retained earnings, 1/1/19
43,000
Accrued liabilities
6,000
Cost of goods sold
180,000
Accumulated depreciation
72,000
Interest expense
16,000
Accounts payable
30,000
Dividends declared and paid during 2019
13,000
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 Shae 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)?
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
0
0
0
$0
----------------
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
0
Total stockholders’ equity
$0
==================
Prepare a balance sheet at December 31, 2019, for Shae Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
SHAE INC.
Balance Sheet
December 31, 2019
Assets
Total current assets
$0
Total assets
$0
Liabilities
Total liabilities
$0
Stockholders’ Equity
Total stockholders’ equity
$0
Total liabilities and stockholders’ equity
$0
=========================
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)?
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b.
Average income tax rate
%
c.
Interest rate
%
d.
Par value per share
e.
Dividend
%
