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    Income statement and balance sheet

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    Merchandise inventory 132,000
    Notes payable (long term) 150,000
    Sales 450,000
    Buildings and equipment 252,000
    Selling, general 36,000
    Accounts receivable 60,000
    Common stock 105,000
    Income tax expense 42,000
    cash 96,000
    Retained earnings 1/1/07 64,500
    Accrued liabilities 9,000
    Cost of goods sold 270,000
    Accumulated Depreciation 108,000
    Interest expense 24,000
    Accounts payable 45,000
    Dividends declared and paid during 2007 19,500

    a. Prepare an income statement and statement of changes in owners equity for the year ended December 31, 2007 and a balance sheet at December 31, 2007.
    b. What is the companies average income tax rate?
    c. What interest rate is charged on long-term debt?
    d. What is the par value per share of common stock?
    e. What is the company's dividend policy?

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    https://brainmass.com/business/financial-statements/income-statement-and-balance-sheet-130219

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    Merchandise inventory 132,000
    Notes payable (long term) 150,000
    Sales 450,000
    Buildings and equipment 252,000
    Selling, general 36,000
    Accounts receivable 60,000
    Common stock 105,000
    Income tax expense 42,000
    cash 96,000
    Retained earnings 1/1/07 64,500
    Accrued liabilities 9,000
    Cost of goods sold 270,000
    Accumulated Depreciation 108,000
    Interest expense 24,000
    Accounts payable 45,000
    Dividends declared and paid during 2007 19,500

    a. prepare an ...

    Solution Summary

    This solution is comprised of preparation of income statement and balance sheet from the given information.

    $2.19

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