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

Accounts receivable	$ 10,400
Accumulated depreciation	50,900
Cost of goods sold	123,000
Income tax expense	8,000
Cash	60,500
Net sales	203,000
Equipment	128,000
Selling, general, and administrative expenses	36,000
Common stock (8,400 shares)	95,000
Accounts payable	12,900
Retained earnings, 1/1/22	23,400
Interest expense	5,600
Merchandise inventory	37,500
Long-term debt	39,000
Dividends declared and paid during 2022	15,200

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)?

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

Accounts receivable	$ 10,400
Accumulated depreciation	50,900
Cost of goods sold	123,000
Income tax expense	8,000
Cash	60,500
Net sales	203,000
Equipment	128,000
Selling, general, and administrative expenses	36,000
Common stock (8,400 shares)	95,000
Accounts payable	12,900
Retained earnings, 1/1/22	23,400
Interest expense	5,600
Merchandise inventory	37,500
Long-term debt	39,000
Dividends declared and paid during 2022	15,200

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)?