Accounts receivable Accumulated depreciation Cost of goods sold $ 10,100 Income tax expense Cash 50,600 125,000 9,000 63,500 Net sales 198,000 Equipment 129,000 Selling, general, and administrative expenses 39,000 Common stock (9,000 shares) 92,000 Accounts payable 14,900 Retained earnings, 1/1/19 37,950 Interest expense. 5,300 Merchandise inventory 38,700 36,000 9,850 Long-term debt Dividends declared and paid during 2019 Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year ended December 31, 2019. 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, 2019, and a balance sheet at December 31, 2019, for Breanna Inc. Based on the financial statements that you have prepared for part a, answer the questions in parts b-e. b. What is the company's average income tax rate? c. What interest rate is charged on long-term debt? Assume that the year-end balance of long-term debt is representative of the average long-term debt account balance throughout the year. d. What is the par value per share of common stock? e. What is the company's dividend policy (.e., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req Al Req A2 Req A3 Req to E Prepare an income statement for the year ended December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to Indicate a negative financial statement effect.) Net sales Cost of goods sold Gross proft BREANNA INC. Income Statement For the Year Ended December 31, 2019 Selling, general and administrative expenses Operating income Interest expense Eaming before taxes Income tax expense Net income 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare a statement of changes in stockholders' equity for the year ended December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Paid-in capital Common stock Retained earnings Beginning balance Net income BREANNA INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2019 Less: Dividends declared and paid Ending balance Total stockholders' equity 0 0 the par e. What is the company's dividend policy (l.e., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare a balance sheet at December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Cash Accounts receivable Total current assets Total assets Accounts payable Total liabilities Common stock Retained eamings BREANNA INC. Balance Sheet December 31, 2019 Assets Liabilities + Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 $ MacBook average long-term d. What is the par value per share of common stock? e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E b. What is the company's average income tax rate? (Round your final answer to the nearest whole percentage.) c. What interest rate is charged on long-term debt? Assume that the year-end balance of long-term debt is representative of the average long-term debt account balance throughout the year. (Round your final answer to the nearest whole percentage.) d. What is the par value per share of common stock? (Round your final answer to the nearest whole Dollars.) e. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)? (Round your final answer to the nearest whole percentage.) Show less A b. Average income tax rate c. Interest rate d. Par value per share e. Dividend % % %