For December 31, 20X1. the balance sheet of Baxter Corporation was as follows: Current Assets Cash Accounts receivable Inventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation $ 25,000 33,000 63,000 Liabilities $ 23,000 Accounts payable 28,000 Notes payable 38,000 Bonds payable 13,300 Stockholders' Equity $ 263,000 Preferred stock 52,600 Common stock Paid in Capital $ 210,480 Retained earnings $ 312,700 Total liabilities and stockholders' equity Net plant and equipment Total assets $ 33,000 68,000 38,000 52,700 $ 312,700 Sales for 20x2 were $285,000, and the cost of goods sold was 55 percent of sales Selling and administrative expense was $28,500. Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31, 20x1 balances. The tax rate averaged 30 percent. $3,300 in preferred stock dividends were paid, and $8,370 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 9 percent A new machine was purchased on December 31, 20X2, at a cost of $48,000. Accounts payab increased by 20 percent. Notes payable incre ed by $7,300 and bonds payable de sed by $16,500, 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.) a. Prepare an income statement for 20X2 (Round EPS answer to 2 decimal places.) 285,000 156,750 128,250 28,500 28,930 70,820 $ Baxter Corporation 20X2 Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation expense Operating profit Interest expense Earnings before taxes Taxes Earnings after taxes Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share $ 70,820 $ 70 820 $ 70,820 b. Prepare a statement of retained earnings for 20x2. Baxter Corporation 20X2 Statement of Retained Earnings Retained earnings balance, January 1, 20X2 Add: Earings available to common stockholders 20X2 Less: Cash dividend declared in 20X2 Retained eamings balance, December 31 20X2 c. Prepare a balance sheet as of December 31, 20X2 (Amounts to be deducted should be indicated with parentheses or a minus sign.) Assets Baxter Corporation 20X2 Balance Sheet Liabilities and Stockholders' Equity Accounts payable Notes payable Bonds payable Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $ Fixed assets Gross plant and equipment Less Accumulated depreciation Net plant and equipment 0 Total liabilities Stockholders' Equity Preferred stock Common stock Capital paid in excess of par of Retained earnings Total stockholders' equity O Total liabilities and stockholders' equity $ $ 0 Total assets $ $ 0