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

Accounts receivable	$ 56,000
Accumulated depreciation	120,000
Cost of goods sold	280,000
Income tax expense	14,632
Cash	143,760
Net sales	428,000
Equipment	272,000
Selling, general, and administrative expenses	67,000
Common stock (39,200 shares)	196,000
Accounts payable	46,000
Retained earnings, 1/1/22	43,280
Interest expense	7,840
Merchandise inventory	74,784
Long-term debt	112,000
Dividends declared and paid during 2022	29,264

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year ended December 31, 2022. 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, 2022, and a balance sheet at December 31, 2022, for Breanna Incorporated. 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)?Complete this question by entering your answers in the tabs below.

• Req A1
• Req A2
• Req A3
• Req B to E

Prepare a balance sheet at December 31, 2022, for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect

Prepare a balance sheet at December 31,2022 , for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Required: a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31,2022 balance sheet at December 31, 2022, for Breanna Incorporated. Based on the financial statements that you have prepa 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? Assume that the year-end balance of long-term debt is representative 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 (i.e., what proportion of the company's earnings is used for dividends)? Complete this question by entering your answers in the tabs below. Prepare a statement of changes in stockholders' equity for the year ended December 31, 2022, for Breanna Incorporated. Note: Enter decreases with a minus sign to indicate a negative financial statement effect