The following information was obtained from the records of Shae Inc.:

Merchandise inventory	$	88,000
Notes payable (long-term)		100,000
Net sales		300,000
Buildings and equipment		168,000
Selling, general, and administrative expenses		24,000
Accounts receivable		40,000
Common stock (14,000 shares)		70,000
Income tax expense		28,000
Cash		64,000
Retained earnings, 1/1/19		43,000
Accrued liabilities		6,000
Cost of goods sold		180,000
Accumulated depreciation		72,000
Interest expense		16,000
Accounts payable		30,000
Dividends declared and paid during 2019		13,000

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:

1. 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 be.
2. What is the company's average income tax rate?
3. 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.
4. What is the par value per share of common stock?
5. What is the company's dividend policy (i.e., what proportion of the company's earnings is used for dividends)?