Question

prepare an income statement of changes in stockholders equity, and a balance sheet, based on the financial statements you have prepped for part a to answer questions in parts b-e

30.00 points 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 Accumulated depreciation Cost of goods sold Income tax expense Cash Equipment Selling general, and administrative expenses Common stock 8.300 shares) Accounts payable Retained earnings, 1/1/16 Interest expense Merchandise inventory Long term dett Dividends declared and paid during 2016 10.000 51 000 127.000 9.000 63.500 200 000 110.000 38 000 99 000 14.400 22150 5.100 37700 39.000 15.450 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 ended December 31, 2016. There were no changes in paid-in capital during the year Required 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 Based on the financial statements that you have prepared for parta, answer the questions in parts be. BREANNA, INC

Answer 1

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Breanna Inc.
Income Statement	Amount $
Sales	208,000.00
Net Sales	208,000.00
Less: Cost of goods sold	127,000.00
Gross profit	81,000.00
Less: Operating Expense
Selling, general and administrative expense	36,000.00
Income before Interest and tax	45,000.00
Less: Interest Expense	5,100.00
Income before tax	39,900.00
Less: Income Tax Expense	9,000.00
Net Income	30,900.00
Statement of Retained Earnings	Amount $
Opening Balance	22,350.00
Add: Net Income	30,900.00
Less: Dividends	15,450.00
Closing balance	37,800.00
Statement of Stockholder's Equity	Amount $
Common Stock	99,000.00
Retained Earnings	37,800.00
Total Stockholder's Equity	136,800.00