For December 31, 20x1, the balance sheet of Bacter Corporation was as follows: $ 21,eee 29,000 59,00 Current Assets Cash Accounts receivable Inventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities $ 19,eee Accounts payable 24,000 Notes payable 34,eee Bonds payable 12,900 Stockholders' Equity $ 259,eee Preferred stock (51.300) Common stock Paid in Capital $ 203,200 Retained earnings $ 297,100 Total liabilities and stockholders' equity 529, see 64,00 14.00 61,100 3 297,100 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, 20x20 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. b. Prepare a statement of retained earnings for 20x2. 01.100 Baxter Corporation 20x2 Statement of Retained Earnings Retained earings balance January 1, 202 Add: Earnings available to common stockholders. 20x2 Less: Cash dividend declared in 20X2 Retained earnings balance. December 31, 20x2 e. Prepare a balance sheet as of December 31, 20x2 (Amounts to be deducted should be indicated with parentheses or a minu sign.) Baxter Corporation 20x2 Balance Sheet Liabilities and Stockholders' Equity Assets Current Assets Total currentes Total abilities Stockholders' Equity Fived assets Ne plant and eswipment Total stokholders' equity Total abilities and stockholders wity Total 5