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just need help with stockholders equity section please 6 1.00 points The followi

ID: 2328233 • Letter: J

Question

just need help with stockholders equity section please

6 1.00 points The following information was obtained from the records of Shae, Inc $ 128.000 140.000 420,000 252.000 Notes payable (long-t Sales Buildings and equipment Selling, general, and administrative expenses Accounts receivable Common stock (20,000 shares) 83,000 200.000 28.140 237.015 123.000 8.400 252,000 113.400 32,200 42.000 14.445 Cost of goods sold ulated depreciation Dividends declared and paid during 2018 Except as otherwise indicated, assume that all balance sheet items reflect account balances at 31, 2016, and that all i a. Prepare an income statement and statement of changes in stockholders equity for the year ended December 31, 2016, and a

Explanation / Answer

SHAE, INC

Income Statement

For the Year ended December 31 '2016

Sales

$ 420,000.00

Cost of Goods Sold

$ 252,000.00

Gross Profit

$ 168,000.00

Operating Expenses

Selling General and Administrative Expenses

$    42,000.00

Operating Profit

$ 126,000.00

Others

Interest Expense

$    32,200.00

Net income Before Taxes

$    93,800.00

Income tax

$    28,140.00

Income after Tax

$    65,660.00

SHAE, INC

Statement of Retained earnings

For the Year ended December 31 '2016

Retained Earnings 1/1/2016

$ 123,000.00

Add: Profit Earned during the year

$    65,660.00

Less: Dividend Declared during the year

$    14,445.00

Retained Earnings12/31/2016

$ 174,215.00

SHAE, INC

Balance Sheet

As at December 31' 2016

Assets

Cash

$ 237,015.00

Accounts Receivables

$    63,000.00

Merchandise Inventory

$ 126,000.00

Total Current Asset

$ 426,015.00

Building and Equipment

$ 252,000.00

Less: Accumulated Depreciation

$ 113,400.00

$ 138,600.00

Total Assets

$ 564,615.00

Liabilities

Accrues Liability

$      8,400.00

Accounts Payable

$    42,000.00

Notes Payable(Long Term)

$ 140,000.00

Total Liabilities

$ 190,400.00

Shareholder's Equity

Common stock

$ 200,000.00

Retained earnings

$ 174,215.00

Total Shareholder's Equity

$ 374,215.00

Total Liabilities and Shareholder's Equity

$ 564,615.00

SHAE, INC

Income Statement

For the Year ended December 31 '2016

Sales

$ 420,000.00

Cost of Goods Sold

$ 252,000.00

Gross Profit

$ 168,000.00

Operating Expenses

Selling General and Administrative Expenses

$    42,000.00

Operating Profit

$ 126,000.00

Others

Interest Expense

$    32,200.00

Net income Before Taxes

$    93,800.00

Income tax

$    28,140.00

Income after Tax

$    65,660.00