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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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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.

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