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

Accounts receivable	$	10,900
Accumulated depreciation		51,400
Cost of goods sold		126,000
Income tax expense		10,000
Cash		61,000
Sales		208,000
Equipment		126,000
Selling, general, and administrative expenses		37,000
Common stock (8,800 shares)		96,000
Accounts payable		11,600
Retained earnings, 1/1/16		23,650
Interest expense		5,300
Merchandise inventory		38,600
Long-term debt		39,000
Dividends declared and paid during 2016		14,850

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)?