The information on the following page was obtained from the records of Breanna Incorporated: Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Net sales $ 10,800 51,800 129,000 10,000 Equipment Selling, general, and administrative expenses i Common stock (8,400 shares) Accounts payable Retained earnings, 1/1/22 Interest expense Merchandise inventory 62,500 203,000 123,000 33,000 93,000 13,800 24,950 5,100 37,200 37,000 Long-term debt Dividends declared and paid during 2022 12,950 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: a. 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. 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 (ie., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare an income statement for the year ended December 31, 2022, for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. BREANNA INCORPORATED Income Statement For the Year Ended December 31, 2022 Net sales Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Interest expense Earning before taxes Income tax expense Net income Req A1 Req A2 > 0 0 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E Prepare a statement of changes in stockholders' equity for the year ended December 31, 2022, for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Paid-in capital Common stock Retained earnings Beginning balance Net income BREANNA INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2022 Less: Dividends declared and paid Ending balance Total stockholders' equity $ 93,000 0 $ 93,000 Cash Accounts receivable BREANNA INCORPORATED Assets Balance Sheet December 31, 2022 Merchandise inventory + Total current assets Equipment Less: Accumulated depreciation Total assets Total liabilities 0 0 Liabilities Accounts payable Stockholders' Equity Long-term debt Total stockholders' equity Total liabilities and stockholders' equity 0 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B to E b. What is the company's average income tax rate? Note: Round your final answer to the nearest whole percentage. 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. Note: Round your final answer to the nearest whole percentage. d. What is the par value per share of common stock? Note: Round your final answer to the nearest whole Dollars. e. What is the company's dividend policy (I.e., what proportion of the company's earnings is used for dividends)? Note: Round your final answer to the nearest whole percentage." b. Average income tax rate c. Interest rate d. Par value per share e. Dividend % Show less A