Problem 2-20 (Algo) Prepare an income statement, balance sheet, and statement of changes in stockholders' equity; analyze results LO 2, 3, 4 The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes payable (long-term) Net sales Buildings and equipment Selling, general, and administrative expenses Accounts receivable Common stock (25,000 shares) Income tax expense Cash Retained earnings, 1/1/19 $103,500 115,000 345,000 207,000 34,500 51,750 150,000 24,840 177,657 92,250 Accrued liabilities Cost of goods sold Accumulated depreciation Interest expense Accounts payable Dividends declared and paid during 2019 6,900 207,000 93,150 20,700 34,500 9,853 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 Shae 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)?