Problem:
| 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 |
Prepare an income statement and statement of changes in owners equity for the year ended December 31, 2007 and
1. Balance sheet at December 31, 2007.
2. What is the companies average income tax rate?
3. What interest rate is charged on long-term debt?
4. What is the par value per share of common stock?
5. What is the company's dividend policy?