The information on the following page was obtained from the records of Breanna, Inc.:

Accounts receivable	$	10,200
Accumulated depreciation		50,200
Cost of goods sold		121,000
Income tax expense		9,500
Cash		61,000
Sales		195,000
Equipment		124,000
Selling, general, and administrative expenses		36,000
Common stock (8,600 shares)		98,000
Accounts payable		10,000
Retained earnings, 1/1/16		24,900
Interest expense		5,900
Merchandise inventory		37,200
Long-term debt		38,000
Dividends declared and paid during 2016		11,300

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year ended December 31, 2016. 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, 2016, and a balance sheet at December 31, 2016, 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?

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 are used for dividends)?