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

Accounts receivable $10,700

Accumulated depreciation51,900

Cost of goods sold127,000

Income tax expense9,000

Cash62,500

Sales192,000

Equipment130,000

Selling, general, and administrative expenses36,000

Common stock (8,200 shares)98,000

Accounts payable12,600

Retained earnings, 1/1/1634,750

Interest expense5,300

Merchandise inventory38,400

Long-term debt37,000

Dividends declared and paid during 20167,350

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.

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 parta,answer the questions in parts b-e.

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. BREANNA, INC. Income Statement For the Year Ended December 31, 2016 BREANNA, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2016 Paid-in capital Retained earnings Beginning balance Ending balance Total stockholders' equityBREANNA, INC. Balance Sheet December 31, 2016 Assets Total current assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity b. What is the company's average income tax rate? Average income tax rate %b. What is the company's average income tax rate? Average income tax rate % c. What interest rate is charged on long-term debt? nterest rate % d. What is the par value per share of common stock? Par value per share e. What is the company's dividend policy (i.e., what proportion of the company's earnings are used for dividends)? Dividend %