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

Accounts receivable	$ 48,000
Accumulated depreciation	112,000
Cost of goods sold	280,000
Income tax expense	14,568
Cash	138,160
Net sales	424,000
Equipment	256,000
Selling, general, and administrative expenses	63,000
Common stock (37,600 shares)	188,000
Accounts payable	38,000
Retained earnings, 1/1/22	38,640
Interest expense	8,160
Merchandise inventory	59,616
Long-term debt	96,000
Dividends declared and paid during 2022	29,136

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)?