Current Assets Cash Accounts receivable Inventory Prepaid expenses Fixed Assets Plant and equipment (gross) Less: Accumulated depreciation Net plant and equipment Total assets Liabilities $ 19,000 Accounts payable 24,000 Notes payable 34,000 Bonds payable 12,900 $ 259,000 Stockholders' Equity Preferred stock (51,800) Common stock Paid in Capital $207,200 Retained earnings $ 21,000 29,000 59,000 $ 29,000 64,000 34,000 61,100 $297,100 Total liabilities and stockholders' equity $ 297,100 Sales for 20X2 were $265,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $26,500. Depreciation expense was 12 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 8 percent, while the interest rate on the bonds payable was 16 percent. This interest expense is based on December 31, 20X1 balances. The tax rate averaged 40 percent. $2,900 in preferred stock dividends were paid, and $6,086 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 8 percent. A new machine was purchased on December 31, 20X2, at a cost of $44,000. Accounts payable increased by 20 percent. Notes payable increased by $6,900 and bonds payable decreased by $14,500, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change. c. Prepare a balance sheet as of December 31, 20X2. Note: Amounts to be deducted should be indicated with parentheses or a minus sign. Baxter Corporation 20X2 Balance Sheet Assets Liabilities and Stockholders' Equity Current Assets: Total current assets Fixed assets: Total liabilities Stockholders' Equity Net plant and equipment Total assets Total stockholders' equity Total liabilities and stockholders' equity