The information on the following page was obtained from the records of Breanna Incorporated:

Accounts receivable	$ 10,200
Accumulated depreciation	51,600
Cost of goods sold	127,000
Income tax expense	10,000
Cash	62,500
Net sales	209,000
Equipment	123,000
Selling, general, and administrative expenses	32,000
Common stock (9,200 shares)	97,000
Accounts payable	11,300
Retained earnings, 1/1/22	20,100
Interest expense	5,200
Merchandise inventory	37,700
Long-term debt	36,000
Dividends declared and paid during 2022	17,400

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 Breanna Incorporated. Based on the financial statements that you have prepared for part a, answer the questions in parts b-e.
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)?