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For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: $ 26,000 34,00 64,000 Current Assets Cash Accounts receivable Inventory Prepaid expenses

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For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: $ 26,000 34,00 64,000 Current Assets Cash Accounts receivable Inventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation Liabilities $ 24,000 Accounts payable 29,000 Notes payable 39,000 Bonds payable 13,400 Stockholders' Equity $ 264,000 Preferred stock 52,800 Common stock Paid in Capital $ 211,200 Retained earnings $ 316,600 Total liabilities and stockholders' equity $ 34,000 69,000 39,000 50,600 $ 316,6ee Net plant and equipment Total assets Sales for 20x2 were $290,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $29.000. 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. $3,400 in preferred stock dividends were paid, and $6,156 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 $49,000. Accounts payable increased by 30 percent. Notes payable increased by $7.400 and bonds payable decreased by $17,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change. a. Prepare an income statement for 20x2.(Round EPS answer to 2 decimal places.) Prey 1 of 2 !!! Next > e to search O BIO 1 Accounts payable increased by 30 percent. Notes payable increased by $7,400 and bonds payat end of the year. The preferred stock, common stock, and capital paid in excess of par accounts di a. Prepare an income statement for 20x2.(Round EPS answer to 2 decimal places.) 3 points Baxter Corporation 20X2 Income Statement eBook Print $ 0 References 0 $ 0 $ 0 $ 0 Earnings available to common stockholders Shares outstanding Earnings per share omheducation.com/ext Sa 2 Homework a $ Earnings available to common stockholders Shares outstanding Earnings per share K b. Prepare a statement of retained earnings for 20x2. ces Baxter Corporation 20x2 Statement of Retained Earnings Retained earnings balance, January 1, 20X2 Retained earnings balance, December 31, 20X2 Prey. nere to search O ALE 99+ 1 c. Prepare a balance sheet as of December 31, 20X2. (Amounts to be deducted should be indicated with parentheses or a minus sign.) 5 Baxter Corporation 20x2 Balance Sheet Liabilities and Stockholders' Equity Book Assets Print Current Assets erences 0 Total current assets 0 Total liabilities Stockholders' Equity Fixed assets $ Net plant and equipment $ D 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ $ Total assets Prey 1 of 2 !!! Next > o T here to search

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