Prepare an income statement, balance sheet, and statement of changes in stockholders' equity based on the financial statements you have prepared for part a to answer questions in parts b-e.
Problem 2-19: Prepare an income statement, balance sheet, and statement of changes in stockholders' equity: analyze results LO 2, 3, 4
The information on the following page was obtained from the records of Breanna, Inc:
Accounts receivable: $10,000
Accumulated depreciation: $51,000
Cost of goods sold: $127,000
Cash: $9,000
Sales: $63,500
Equipment: $208,000
Selling, general, and administrative expenses: $130,000
Common stock (8,300 shares): $36,000
Accounts payable: $99,000
Retained earnings, 1/1/16: $14,400
Interest expense: $22,350
Merchandise inventory: $5,100
Long-term debt: $37,700
Dividends declared and paid during 2016: $20,000
During the year ended December 31, 2016, there were no changes in paid-in capital. Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year.
Required:
Based on the financial statements that you have prepared for part a, answer the questions in parts b-e.
a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2016, and a balance sheet at December 31, 2016, for Breanna, Inc.
