Prepare an Income Statement, Balance Sheet, and Statement of Changes in Shareholder's Equity. Analyze the results. The following information was obtained from the records of Shae, Inc.:
Merchandise Inventory
$132,000
Notes Payable, long term
$150,000
Sales
$450,000
Buildings and Equipment
$252,000
Selling, general, and administrative expenses
$36,000
Accounts Receivable
$60,000
Common Stock (21,000 shares)
$105,000
Income tax expense
$42,000
Cash
$96,000
Retained Earnings, 1/1/13
$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 2013
$19,500
Except as otherwise indicates, assume that all Balance Sheet items reflect account balances at December 31, 2013, and that all Income Statement items reflect activities that occurred during the year ended December 31, 2013. There were no changes in paid-in capital during the year.
Required:
a. Prepare an Income Statement and Statement of Changes in Shareholder's Equity for the year ended December 31, 2013, and a Balance Sheet at December 31, 2013, for Shae, Inc.
Based on the financial statements that you have prepared for part a, answer the questions in parts b-e. Provide brief explanations for each of your answers and state any assumptions you believe are necessary to ensure that your answers are correct.
b. What is the company's average income tax rate?
c. What interest rate is charged on long-term debt?
d. What is the ar value per share of common stock?
e. What proportion of the company's earnings is used for dividends?
Prepare an Income Statement, Balance Sheet, and Statement of Changes in Shareholder's Equity. Analyze the results. The following information was obtained from the records of Shae, Inc.:
| Merchandise Inventory | $132,000 |
| Notes Payable, long term | $150,000 |
| Sales | $450,000 |
| Buildings and Equipment | $252,000 |
| Selling, general, and administrative expenses | $36,000 |
| Accounts Receivable | $60,000 |
| Common Stock (21,000 shares) | $105,000 |
| Income tax expense | $42,000 |
| Cash | $96,000 |
| Retained Earnings, 1/1/13 | $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 2013 | $19,500 |
Except as otherwise indicates, assume that all Balance Sheet items reflect account balances at December 31, 2013, and that all Income Statement items reflect activities that occurred during the year ended December 31, 2013. There were no changes in paid-in capital during the year.
Required:
a. Prepare an Income Statement and Statement of Changes in Shareholder's Equity for the year ended December 31, 2013, and a Balance Sheet at December 31, 2013, for Shae, Inc.
Based on the financial statements that you have prepared for part a, answer the questions in parts b-e. Provide brief explanations for each of your answers and state any assumptions you believe are necessary to ensure that your answers are correct.
b. What is the company's average income tax rate?
c. What interest rate is charged on long-term debt?
d. What is the ar value per share of common stock?
e. What proportion of the company's earnings is used for dividends?
Related questions
Following are selected balance sheet accounts of Allman Bros.Corp. at December 31, 2014 and 2013, and the increases or decreasesin each account from 2013 to 2014. Also presented is selectedincome statement information for the year ended December 31, 2014,and additional information.
| Selected balance sheet accounts | |||||||||
| Assets | 2014 | 2013 | Increase | ||||||
| Accounts receivable | $33,540 | $23,280 | $10,260 | ||||||
| Property, plant, and equipment | 277,720 | 247,550 | 30,170 | ||||||
| Accumulated depreciationâplant assets | (178,020 | ) | (166,120 | ) | (11,900 | ) | |||
| Liabilities and stockholdersâ equity | 2014 | 2013 | Increase | ||||||
| Bonds payable | $ 49,260 | $45,910 | $3,350 | ||||||
| Dividends payable | 8,290 | 5,110 | 3,180 | ||||||
| Common stock, $1 par | 21,750 | 19,230 | 2,520 | ||||||
| Additional paid-in capital | 9,530 | 3,160 | 6,370 | ||||||
| Retained earnings | 103,010 | 91,190 | 11,820 | ||||||
| Selected income statement information forthe year ended December 31, 2014 | |||||||||
| Sales revenue | $155,040 | ||||||||
| Depreciation | 38,660 | ||||||||
| Gain on sale of equipment | 15,420 | ||||||||
| Net income | 31,250 | ||||||||
Additional information:
| 1. | During 2014, equipment costing $44,130 was sold for cash. | |
| 2. | Accounts receivable relate to sales of merchandise. | |
| 3. | During 2014, $24,540 of bonds payable were issued in exchangefor property, plant, and equipment. There was no amortization ofbond discount or premium. |
Determine the category (operating, investing, or financing) and theamount that should be reported in the statement of cash flows forthe following items.
VERY important to have accuracy forthese..thanks
Ryan's Cars had the following accounts andamounts in its financial statements on December 31, 2010. Assumethat all balance sheet items reflect account balances at December31, 2010, and that all income statement items reflect activitiesthat occurred during the year then ended.
| Interest expense | $ | 34,000 |
| Paid-in capital | 87,000 | |
| Accumulated depreciation | 32,000 | |
| Notes payable (long-term) | 289,000 | |
| Rentexpense | 71,000 | |
| Merchandise inventory | 834,000 | |
| Accounts receivable | 186,000 | |
| Depreciation expense | 12,000 | |
| Land | 123,000 | |
| Retained earnings | 426,480 | |
| Cash | 139,000 | |
| Costof goods sold | 1,759,000 | |
| Equipment | 65,000 | |
| Income tax expense | 231,480 | |
| Accounts payable | 101,000 | |
| Sales revenue | 2,519,000 | |
| Required: | |
| (a) | Calculate the difference between current assets and currentliabilities for Ryan's Cars at December 31, 2010. (Omit the "$" sign in yourresponse.) |
| Difference | $ |
| (b) | Calculate the total assets at December 31, 2010. (Omit the "$" sign in yourresponse.) |
| Total assets | $ |
| (c) | Calculate the earnings from operations (operating income) for theyear ended December 31, 2010. (Omitthe "$" sign in your response.) |
| Operating income | $ |
| (d | Calculate the net income (or loss) for the year ended December 31,2010. (Omit the "$" sign in yourresponse.) Select one (Net income/Net loss) $________
|
| Devin E Corporation | |||
| Balance Sheet | |||
| As of December 31, | |||
| 2015 | 2014 | ||
| Assets: | |||
| Cash & Cash Equivalents | $41,900 | $25,000 | |
| Accounts Receivable | 24,000 | 6,250 | |
| Inventory | 30,000 | 36,000 | |
| CurrentAssets | 95,900 | 67,250 | |
| Land | 25,000 | 10,000 | |
| Equipment | 42,000 | 38,500 | |
| Less: Accumulated Depreciation | (14,000) | (7,000) | |
| 53,000 | 41,500 | ||
| Total Assets | 148,900 | 108,750 | |
| Liabilities: | |||
| Accounts Payable | 17,500 | 22,500 | |
| Accrued Salaries Payable | 5,500 | 8,000 | |
| Rent Expense Payable | 2,200 | 1,000 | |
| Income Tax Payable | 6,900 | 4,000 | |
| Current Liabilities | 32,100 | 35,500 | |
| Long-term notes payable | 50,000 | 30,000 | |
| Total Liabilities | 82,100 | 65,500 | |
| Stockholders Equity: | |||
| Common Stock | 42,000 | 30,000 | |
| Retained Earnings | 24,800 | 13,250 | |
| Total Liabilities & StockholdersEquity | $148,900 | $108,750 | |
| Devin E Corporation | |||
| Income Statement | |||
| For the Year Ended December 31, 2015 | |||
| 2015 | |||
| Revenues | $147,000 | ||
| Cost of Goods Sold | 84,000 | ||
| Gross Profit | 63,000 | ||
| Operating Expenses | |||
| Depreciation Expense | 7,000 | ||
| Salary Expense | 14,600 | ||
| Insurance Expense | 2,500 | ||
| Rent Expense | 10,000 | ||
| Interest Expense | 4,200 | ||
| Total OperatingExpenses | 38,300 | ||
| Income from Operations | 24,700 | ||
| Income Tax Expense | 6,900 | ||
| Net Income | $17,800 | ||
| Devin E Corporation (theâCompanyâ) manufactures food processing equipment. Use DevinCorporationâs 2015 and 2014 balance sheets and 2015 incomestatement shown below to prepare a statement of cash flows for2015. Note that the Company paid dividends of $6,250 during2015. |
Please fill in the balance sheet as well as create a statementof cash flow sheet
| Devin E Corporation | ||||||||
| Balance Sheet | ||||||||
| 31-Dec | ||||||||
| Worksheet for Cash Flow | ||||||||
| 2015 | 2014 | Change | Cash | Operating | Investing | Financing | ||
| Cash and Cash Equivalents | ||||||||
| Accounts Receivable | ||||||||
| Inventory | ||||||||
| Land | ||||||||
| Equipment | ||||||||
| Accumulated Depreciation | ||||||||
| Accounts Payable | ||||||||
| Accrued Salaries Payable | ||||||||
| Rent Expense Payable | ||||||||
| Income Tax Payable | ||||||||
| Long-term Note Payable | ||||||||
| Common Stock | ||||||||
| Retained Earnings | ||||||||
| Devin E Corporation | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 2015 | ||
