The information on the following page was obtained from the records of Breanna Incorporated: Accounts receivable...

  

Transcribed Image Text:

The information on the following page was obtained from the records of Breanna Incorporated: Accounts receivable Accumulated depreciation $ 48,000 112,000 Cost of goods sold 280,000 Income tax expense 14,568 Cash 138,160 Net sales 424,000 Equipment 256,000 Selling, general, and administrative expenses 63,000 Common stock (37,600 shares) 188,000 Accounts payable 38,000 Retained earnings, 1/1/22 38,640 Interest expense 8,160 Merchandise inventory 59,616 Long-term debt 96,000 29,136 Dividends declared and paid during 2022 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: a. 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 Breanna Incorporated. 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)? 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. Note: Round your "Interest rate" answer to 1 decimal place. 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)? b. Average income tax rate % % c. Interest rate d. Par value per share e. Dividend % Show less A The information on the following page was obtained from the records of Breanna Incorporated: Accounts receivable Accumulated depreciation $ 48,000 112,000 Cost of goods sold 280,000 Income tax expense 14,568 Cash 138,160 Net sales 424,000 Equipment 256,000 Selling, general, and administrative expenses 63,000 Common stock (37,600 shares) 188,000 Accounts payable 38,000 Retained earnings, 1/1/22 38,640 Interest expense 8,160 Merchandise inventory 59,616 Long-term debt 96,000 29,136 Dividends declared and paid during 2022 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: a. 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 Breanna Incorporated. 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)? 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. Note: Round your "Interest rate" answer to 1 decimal place. 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)? b. Average income tax rate % % c. Interest rate d. Par value per share e. Dividend % Show less A