The information on the following page was obtained from the records of Breanna Inc.: $ Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Net sales Equipment Selling, general, and administrative expenses Common stock (8,180 shares) Accounts payable Retained earnings, 1/1/19 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2019 10,789 50, 300 122,800 10, 880 62,500 192,000 122,000 36,000 94, eee 13,400 26,400 5,000 37,400 39,000 9,500 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 pald-in capital during the year. Required: a. 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 Ing. Based on the financial statements that you have prepared for part o, 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? Assume that the year end balance of long-term debt is representative of the average long-term debt account balance throughout the year. d. What is the par value per share of common stock? e. What is the company's dividend policy (ie, what proportion of the company's earnings is used for dividends)? Balance Sheet December 31, 2019 Assets $ Cash Accounts receivable Merchandise inventory 62,500 10,700 37,400 | 110,600 122,000 50,300 Total current assets Equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Long-term debt 110,600 13,400 39,000 Total liabilities 52,400 Stockholders' Equity Common stock . 94,000 35,900 Total stockholders' equity Total liabilities and stockholders' equity 129,900 182,300