em 2.19 LO 2, 3, 4 Prepare an income statement, balance sheet, and statement of changes in stockholders' equity; analyze results The information on the following page was obtained from the records of Breanna Inc.: Accounts receivable Accumulated depreciation $ 40,000 208,000 Cost of goods sold 512,000 Income tax expense 32,000 Cash 260,000 Net sales 800,000 Equipment 480,000 Selling, general, and administrative expenses 136,000 Common stock (36,000 shares) 360,000 Accounts payable 60,000 Retained earnings, 1/1/19 92,000 24,000 Merchandise inventory 148,000 160,000 48,000 Interest expense 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. Provide brief explanations for each of your answers and state any assumptions you believe are necessary to ensure that your answers are correct. b. What is the company's average income tax rate? c. What interest rate is charged on long-term debt? d. What is the par value per share of common stock? What is the company's dividend policy (i.e., what proportion of the company's earnings are used for dividends)?