For December 31, 2000, the balance sheet of the Baxter Corporation is as follows:

Baxter Corporation Balance Sheet December 31, 2010
Current Asset		Liabilities
Cash	$10,000		Accounts payable	$12,000
Accounts receivable	15,000		Note Payable	20,000
Inventory	25,000		Bonds Payable	50,000
Prepaid Expense	12,000
Fixed Assets		Stockholders Equity
Plant & equipment (gross)	$250,000		Common stock	$75,000
Less: Accumulated Depreciation	50,000		Paid-in capital	25,000
Net plant and assets	200,000		Retained earnings	80,000
Total assets	$262,000		Total liabilities & equity	$262,000

Sales for the year 2011 were $220,000, and the cost of goods sold was 60% of sales. Selling and administrative expense was $22,000. Depreciation expense was 8% of gross plant and equipment at the be-ginning of the year. Interest expense for the notes payable was 10%, and interest on the bonds payable was 12%. These interest expenses are based on December 31, 2010, balances. The tax rate averaged 20%.

$2,000 in preferred stock dividends were paid and $8,400 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 2011, the cash balance and pre-paid expenses balance were unchanged. Accounts receivable and inventory increased by 10%.

A new machine was purchased on December 31, 2011, at a cost of $35,000, for which depreciation would start from year 2012. Accounts payable increased by 25%. Notes payable increased by $6,000 and bonds payable decreased by $10,000, both at the end of the year. The common stock and paid-in capital in excess of par accounts did not change.

Prepare an income statement for 2011.

Prepare a statement of retained earnings for 2011.

Prepare a balance sheet as of December 31, 2011.

Prepare a statement of cash flow for 2011.

Prepare a common-size income statement for both 2010 and 2011.

Prepare a common-size balance sheet for 2011.