The following information was obtained from the records of Shae Incorporated:

Merchandise inventory $ $144,000$

Notes payable $($long$-$term$)160,000$

Net sales $480,000$

Buildings and equipment $288,000$

Selling, general, and administrative expenses $48,000$

Accounts receivable $72,000$

Common stock $(23,000$ shares$)230,000$

Income tax expense $30,720$

Cash $268,768$

Retained earnings, $1/1/22141,450$

Accrued liabilities $9,600$

Cost of goods sold $288,000$

Accumulated depreciation $129,600$

Interest expense $41,600$

Accounts payable $48,000$

Dividends declared and paid during $202217,562$

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December $31,2022,$ and that all income statement items reflect activities that occurred during the year ended December $31,2022.$ There were no changes in paid$-$in capital during the year.

Required:

Prepare an income statement and statement of changes in stockholders$$ equity for the year ended December $31,2022,$ and a balance sheet at December $31,2022,$ for Shae Incorporated. Based on the financial statements that you have prepared for part a$,$ answer the questions in parts b$$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$)?$

Answer rating: 100% (QA)

Shae Incorporated Financial Statements Income Statement For the year ended December 31 2022 Descript... View the full answer