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

Accounts receivable	$	10,200
Accumulated depreciation		50,900
Cost of goods sold		124,000
Income tax expense		9,000
Cash		61,000
Sales		196,000
Equipment		124,000
Selling, general, andadministrative expenses		31,000
Common stock (9,100 shares)		95,000
Accounts payable		11,900
Retained earnings, 1/1/16		23,500
Interest expense		5,400
Merchandise inventory		38,400
Long-term debt		39,000
Dividends declared and paidduring 2016		13,300

Except as otherwise indicated, assume that all balance sheetitems reflect account balances at December 31, 2016, and that allincome statement items reflect activities that occurred during theyear ended December 31, 2016. There were no changes in paid-incapital during the year.

Required:

a. Prepare an income statement and statement ofchanges 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 parta, answer the questions in parts b-e.

b. What is the company's average income taxrate?

c. What interest rate is charged on long-termdebt?

d. What is the par value per share of commonstock?

e. What is the company's dividend policy (i.e.,what proportion of the company's earnings are used fordividends)?