Answer:
Shae Inc.
Part a:
Income Statement for the year ended December 31, 2019:
Net revenues $189,000
Cost of goods sold 137,600
Gross profit $51,400
All other expenses 24,000
Net income $27,400
Statement of Changes in Stockholders' Equity for the year ended December 31, 2019:
Common stock $23,500
Retained earnings 31,700
Net income 27,400
Dividends 0
Equity balance $82,600
Balance Sheet as at December 31, 2019:
Assets
Current Assets:
Cash $26,200
Accounts receivable 28,000
Inventories 40,000
Other current assets 4,700
Total current assets $98,900
Long-term assets:
Property and equipment, net. 19,000
Other assets 24,100
Total long-term assets $43,100
Total assets $142,000
Liabilities and Equity
Total current liabilities $52,600
Long-term liabilities 6,800
Total liabilities $59,400
Common stock $23,500
Retained earnings 59,100
Total equity $82,600
Total liabilities and equity $142,000
b. The company's average income tax rate = 0%
c. The interest rate on long-term debt = 0%
d. The par value per share = No par value (The number of shares was not indicated)
e. The company's dividend is to pay no dividends.
Step-by-step explanation:
a) Data and Calculations:
Trial Balance as of December 31, 2019:
Account Titles Debit Credit
Cash $26,200
Accounts receivable 28,000
Inventories 40,000
Other current assets 4,700
Property and equipment, net. 19,000
Other assets 24,100
Total current liabilities $52,600
Long-term liabilities 6,800
Common stock 23,500
Retained earnings 31,700
Net revenues 189,000
Cost of goods sold 137,600
All other expenses 24,000
Dividends 0
Totals $303,600 $303,600
Retained earnings, Jan 1 $31,700
Net income 27,400
Dividends 0
Retained earnings, Dec 31 $59,100