The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes payable (long-term) Net sales Buildings and equipment Selling, general, and administrative expenses Accounts receivable Common stock (30,000 shares) Income tax expense Cash Retained earnings, 1/1/19 Accrued liabilities Cost of goods sold Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2019 $162,000 180,000 540,000 324,000 54,000 81,000 270,000 32,400 313,326 166,050 10,800 324,000 145,800 54,000 54,000 21,924 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 Shae 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.
The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes payable (long-term) Net sales Buildings and equipment Selling, general, and administrative expenses Accounts receivable Common stock (30,000 shares) Income tax expense Cash Retained earnings, 1/1/19 Accrued liabilities Cost of goods sold Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2019 $162,000 180,000 540,000 324,000 54,000 81,000 270,000 32,400 313,326 166,050 10,800 324,000 145,800 54,000 54,000 21,924 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 Shae 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hello, need help please
Transcribed Image Text:The following information was obtained from the records of Shae Inc.:
Merchandise inventory
Notes payable (long-term)
Net sales
Buildings and equipment
Selling, general, and administrative expenses
Accounts receivable
Common stock (30,000 shares)
Income tax expense
Cash
Retained earnings, 1/1/19
Accrued liabilities
$162,000
180,000
540,000
324,000
54,000
81,000
270,000
32,400
313,326
166,050
10,800
324,000
145,800
54,000
54,000
21,924
Cost of goods sold
Accumulated depreciation
Interest expense
Accounts payable
Dividends declared and paid during 2019
Y.
Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2019, and hat 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 Shae 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.
Transcribed Image Text:e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)?
Sar value per share of common stock?
the year.
Of Tong-teII uept is representative or L
Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Req A3
Req B to E
b. What is the company's average income tax rate? (Round your final answer to the nearest whole percentage.)
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. (Round your final answer to the nearest whole percentage.)
d. What is the par value per share of common stock? (Round your final answer to the nearest whole Dollars.)
e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? (Round your
final answer to the nearest whole percentage.)
Show less A
b. Average income tax rate
C.
Interest rate
d. Par value per share
e. Divídend
Req A3
Req B to E
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