Completed financial statements for Baxter, Inc. follow. Baxter, Inc. Statement of Income Year Ended November 30, 2021 Service revenue $225,000 Operating expenses 180,000 Income before income tax 45,000 Income tax expense 9,000 Net income $36,000 Baxter, Inc. Statement of Changes in Equity Year Ended November 30, 2021 Common Shares Retained Earnings Total Equity Balance, December 1, 2020 $0 $0 $0 Issued common shares 250,000 250,000 Net income 36,000 36,000 Dividends declared (15,000) (15,000) Balance, November 30, 2021 $250,000 $21,000 $271,000 Baxter, Inc. Statement of Financial Position November 30, 2021 Assets Liabilities and Shareholders' Equity Cash $22,000 Liabilities Accounts receivable 34,000 Accounts payable $93,000 Land 300,000 Bank loan payable 600,000 Buildings 390,000 Total liabilities 693,000 Equipment 218,000 Shareholders' equity Total assets $964,000 Common shares 250,000 Retained earnings 21,000 Total shareholders' equity 271,000 Total liabilities and shareholders' equity $964,000 Explain the sequence for preparing the financial statements. BIUT T eTextbook and Media !!! III MM loo 99 100 T 0 Word(s) Explain the interrelationships among the statement of income, statement of changes in equity, and statement of financial position. BI U T T Ix = III 99 T