5. 30.00 points For December 31, 2012, the balance sheet of Baxter Corporation was as follows Liabilities s 23,000 Accounts payable Current Assets Cash Accounts receivable Inventory Prepaid expenses S 25,000 33,000 63,000 28,000 Notes payable 38,000 Bonds payable 13,300 Fixed Assets Stockholders' Equity s 33,000 68,000 38,000 52,700 $263,000 Preferred stock Gross plant and equipment Less: Accumulated depreciation Common stock Paid-in capital 52,600 Net plant and equipment 210,400 Retained earnings Total assets 312,700 Total liabilities and stockholders' equity S 312,700 Sales for 2013 were $285.000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $28,500 Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent This interest expense is based on December 31, 2012 balances. The tax rate averaged 30 percent $3,300 in preferred stock dividends were paid and $8,370 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding During 2013, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9 percent. A new machine was purchased on December 31, 2013, at a cost of $48,000 Accounts payable increased by 20 percent Notes payable increased by $7,300 and bonds payable decreased by $16,500, both at the end of the year The preferred stock, common stock, and capital paid in excess of par accounts did not change, a. Prepare an income statement for 2013 (Round EPS answer to 2 decimal places. Input all amounts as positive values ) BAXTER CORPORATION Sales Cost of goods sold 285000 156750 Gross profit Selling and administrative expense Depreciation expense 128250 28,500 28,930 Operating profit Interest expense 70820 12420 Earnings before taxes Taxes 58400 17520 Earnings after taxes Preferred stock dividends 3300 Earnings available to common sockholders Shares outstanding 37580 Earnings per share 3.75 5. 30.00 points For December 31, 2012, the balance sheet of Baxter Corporation was as follows Liabilities s 23,000 Accounts payable Current Assets Cash Accounts receivable Inventory Prepaid expenses S 25,000 33,000 63,000 28,000 Notes payable 38,000 Bonds payable 13,300 Fixed Assets Stockholders' Equity s 33,000 68,000 38,000 52,700 $263,000 Preferred stock Gross plant and equipment Less: Accumulated depreciation Common stock Paid-in capital 52,600 Net plant and equipment 210,400 Retained earnings Total assets 312,700 Total liabilities and stockholders' equity S 312,700 Sales for 2013 were $285.000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $28,500 Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent This interest expense is based on December 31, 2012 balances. The tax rate averaged 30 percent $3,300 in preferred stock dividends were paid and $8,370 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding During 2013, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9 percent. A new machine was purchased on December 31, 2013, at a cost of $48,000 Accounts payable increased by 20 percent Notes payable increased by $7,300 and bonds payable decreased by $16,500, both at the end of the year The preferred stock, common stock, and capital paid in excess of par accounts did not change, a. Prepare an income statement for 2013 (Round EPS answer to 2 decimal places. Input all amounts as positive values ) BAXTER CORPORATION Sales Cost of goods sold 285000 156750 Gross profit Selling and administrative expense Depreciation expense 128250 28,500 28,930 Operating profit Interest expense 70820 12420 Earnings before taxes Taxes 58400 17520 Earnings after taxes Preferred stock dividends 3300 Earnings available to common sockholders Shares outstanding 37580 Earnings per share 3.75