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

Accounts receivable	$	10,200
Accumulated depreciation		50,800
Cost of goods sold		126,000
Income tax expense		9,000
Cash		63,500
Sales		201,000
Equipment		126,000
Selling, general, and administrative expenses		33,000
Common stock (9,400 shares)		92,000
Accounts payable		14,100
Retained earnings, 1/1/16		28,950
Interest expense		5,700
Merchandise inventory		38,800
Long-term debt		39,000
Dividends declared and paid during 2016		13,650

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.

Breanna. INC

Income Statement, Statement Changes in Stockholders' Equity, and Balance Sheet for the year ended Decemeber 31, 2016.

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)?