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

Accounts receivable	$	10,600
Accumulated depreciation		50,200
Cost of goods sold		121,000
Income tax expense		9,000
Cash		63,000
Net sales		202,000
Equipment		121,000
Selling, general, and administrative expenses		36,000
Common stock (9,000 shares)		97,000
Accounts payable		12,500
Retained earnings, 1/1/19		20,350
Interest expense		5,300
Merchandise inventory		37,800
Long-term debt		37,000
Dividends declared and paid during 2019		15,350

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year ended December 31, 2019. 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, 2019, and a balance sheet at December 31, 2019, for Breanna Inc. 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)?

Prepare an income statement for the year ended December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Prepare a statement of changes in stockholders equity for the year ended December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Prepare a balance sheet at December 31, 2019, for Breanna Inc. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

b. What is the company's average income tax rate? (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. (Round your final answer to the nearest whole percentage.) d. What is the par value per share of common stock? (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)? (Round your final answer to the nearest whole percentage.)