For December $31,20$XX$,$ the balance sheet of the Gardner Corporation is as follows:

Balance Sheet

Current Assets

Liabilities

Cash

$$13,300$

Accounts payable

$$20,300$

Accounts receivable

$15,700$

Notes payable

$29,300$

Inventory

$34,500$

Bonds payable

$53,400$

Prepaid expenses

$13,500$

Capital Assets

Shareholders$$ Equity

Plant and equipment $($gross$)$

$$335,000$

Common stock

$$75,000$

Less: Accumulated amortization

$56,300$

Retained earnings

$177,700$

Net plant and equipment

$278,700$

Total assets

$$355,700$

Total liabilities and shareholders$$ equity

$$355,700$

Sales for $20$XY were $$316,000,$ with cost of goods sold being $68$ percent of sales. Amortization expense was $12$ percent of plant and equipment $($net$)$ at the beginning of the year. Interest expense for the bonds payable was $14$ percent, while interest on the notes payable was $13$ percent. These are based on December $31,20$XX$,$ balances. Selling and administrative expenses were $$25,100,$ and the tax rate averaged $18$ percent.

During $20$XY$,$ the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by $13$ percent, and accounts payable increased by $32$ percent. A new machine was purchased on December $31,20$XY$,$ at a cost of $$46,000.$ A cash dividend of $$9,200$ was paid to common shareholders at the end of $20$XY$.$ Also, notes payable increased by $$6,187$ and bonds payable decreased by $10,060.$ The common stock account did not change.

a$.$ Prepare an income statement for $20$XY$.($Input all answers as positive values.$)$

Gardner Corporation

Income Statement

For the Year Ending December $31,20$XY

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$

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$

b$.$ Prepare a balance sheet as of December $31,20$XY$.($Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity.$)$

Gardner Corporation

Balance Sheet

For the Year Ended December $31,20$XY

Current Assets: Liabilities:

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$

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$

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Total current assets

$

Total liabilities

$

Capital assets Shareholders$$ equity

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$

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$

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Net plant and equipment

Total assets $

Total liabilities and shareholders' equity

$

c$.$ Prepare a statement of cash flows for the year ending December $31,20$XY$.($Record the change in the notes payable under the operating activity of Cash flow. Do not leave any empty spaces; input a $0$ wherever it is required. Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.$)$

Gardner Corporation

Statement of Cash Flows

For the Year Ended December $31,20$XY

Operating Activities:

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$

Add items not requiring an outlay of cash:

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Cash flow from operations

Changes in non$-$cash working capital:

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Net Change in non$-$cash working capital $

Cash

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operating activities

Investing activities:

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Cash

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Investing activities

Financing activities:

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Cash

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financing activities

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Cash, beginning of year

Cash, end of year $