For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Liabilities Current Assets S 25.000 Accounts payable 30,000 Notes payable Bonds payable S 27,000 35,000 65,000 Cash Accounts receivable Prepaid expenses 13.500 Fixed Assets Stockholders' Equity S 265,000 53.000 Preferred stock Common stock Gross plant and Less: Accumulated depreciation S 35.000 70.000 Paid in Capital 40,000 Net plant and equipment Total assets 212,000 320.500 S 320.500 Total liabilities and stockholders' equity Sales for 20x2 were $295,000, and the cost of goods sold was 60 percent of sales. Selling and administrative expense was $29,500. Depreciation expense was 8 percent of plant and equipment (gross) at the beginning of the year. Intere balances. The tax rate averaged 20 percent payable wa percent, intere onds payable was rest expense based cember expense common stock outstanding. common stockho lders. There were 10,000 shares $3,500 in preferred stock dividends were paid, and $4,950 in dividends were paid During 20x2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 10 percent. A new machine was purchased on December 31, 20X2, at a cost of $50,000. Accounts pay sed by 35 percent. Notes payable increased by $7,500 and bonds payable decreased by $17,500, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.) Baxter Corporation 20X2 Income Statement Earnings available to common stockholders Shares outstanding Earnings per share b. Prepare a statement of retained earnings for 20X2 Baxter Corporation 20X2 Statement of Retained Earnings Retained earnings balance, January 1, 20x2 Retained earnings 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.) Baxter Corporation 20X2 Balance Sheet Liabilities and Stockholders' Equity Assets Current Assets Total current assets Total liabilities Stockholders' Equity Fixed assets: Net plant and equipment Total stockholders' equity Total liabilities and stockholders' equity Total assets