32,000 Bonds payable 2,700 57,000 Prepaid expenses Fixed Assets S 257,000 Preterred stock Net plant and equipment for the notes payable was 12 percent, while the interest rale on the bonds payabie was 14 percent This interest expense is tax rate averaged 30 percent $2,700 in preferred stock dividends were During 20x2, the cash balance and prepaid expenses balances were ecevable and inventory increased by 12 percent A new machne was purchased on December 31, 20x2, at a cost of $42.000. excess of par accounts did not change