Problem 2.

19
Prepare an income statement, balance sheet, and statement of changes in stockholders’ equity; analyze results The information on th

Breanna Inc
Income Statement
For the Year December 31, 2019

Net Sales $800,000.00

Cost of Goods Sold $512,000.00
Gross Profit $288,000.00
Sellng, General, and Admin Expense $136,000.00
Income from Operations $152,000.00
Interest Expense $24,000.00
Income before Income Tax $128,000.00
Income Tax Expense $32,000.00
Net Income $96,000.00

Breanna Inc
Statement of Changes in Stocholders' Equity
For the Year December 31, 2019
Debit Credit
Paid in Capital
Common Stock $360,000.00
Retained Earnings
Beginning balance $92,000.00
Net income for the year $96,000.00
Less: Dividends declared and paid for the year $48,000.00
Ending Balance $140,000.00
Total Stockholders Equity $500,000.00

Breanna Inc
Balance Sheet
For the Year December 31, 2019
Assets:
Cash $260,000.00
Accounts Receivable $40,000.00
Merchandise Inventory $148,000.00
Total Current Assets $448,000.00
Equipment $480,000.00
Less: Accumulated Depreciation $208,000.00
Total Assets $720,000.00

Liabilities
Accounts Payable $60,000.00
Long-term Debt $160,000.00
Total Liabilties $220,000.00

Stockholders' Equity
Common Stock $360,000.00
Retained Earnings $140,000.00
Total Stockholders Equity $500,000.00
Total Liabilites and Stockholders Equity $720,000.00
alyze results The information on the following page was obtained from the records of Breanna Inc.:

b. 0.25

c. 0.15

d. $10.00

e. 50.00%