The following information was obtained from the records of Shae Incorporated:

Merchandise inventory	$ 157,500
Notes payable (long-term)	175,000
Net sales	525,000
Buildings and equipment	315,000
Selling, general, and administrative expenses	52,500
Accounts receivable	78,750
Common stock (20,000 shares)	260,000
Income tax expense	31,950
Cash	302,076
Retained earnings, 1/1/22	159,900
Accrued liabilities	10,500
Cost of goods sold	315,000
Accumulated depreciation	141,750
Interest expense	51,000
Accounts payable	52,500
Dividends declared and paid during 2022	20,874

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year ended December 31, 2022. 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, 2022, and a balance sheet at December 31, 2022, for Shae Incorporated. 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)?

Prepare an income statement for the year ended December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Prepare an income statement for the year ended December 31, 2022, for Shae Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect