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

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References

Accounts receivable

Accumulated depreciation

Cost of goods sold

Income tax expense

Cash

Net sales

Equipment

Selling, general, and administrative expenses

Common stock shares$)$

Accounts payable

Retained earnings, $\frac{1}{1}\frac{?}{22}$

Interest expense

Merchandise inventory

Long$-$term debt

Dividends declared and paid during $2022$

$$54,000$

$118,000$

$280,000$

$21,546$

$142,600$

$427,000$

$268,000$

$66,000$

$194,000$

$44,000$

$42,120$

$9,180$

$66,657$

$108,000$

$25,137$

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 $($i$.$e$.,$ what proportion of the company's earnings is used for dividends$)?$

Complete this question by entering your answers in the tabs below.

Req A$2$

Req A$3$