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

Accounts receivable	$	11,000
Accumulated depreciation		51,300
Cost of goods sold		126,000
Income tax expense		9,500
Cash		63,000
Sales		191,000
Equipment		125,000
Selling, general, and administrative expenses		38,000
Common stock (9,400 shares)		94,000
Accounts payable		10,900
Retained earnings, 1/1/16		35,650
Interest expense		5,000
Merchandise inventory		38,100
Long-term debt		39,000
Dividends declared and paid during 2016		6,250

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.

Required:

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.

b. What is the company's average income tax rate?

c. What interest rate is charged on long-term debt?

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 are used for dividends)?