For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: $ 23,000 31,000 61,000 Current Assets Cash Accounts receivable Inventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation Liabilities $ 21,000 Accounts payable 25,000 Notes payable 36,800 Bonds payable 13,100 Stockholders' Equity 5 261,000 Preferred stock (52,200) Common stock Paid in Capital 5. 208,500 Retained earnings 3 384,900 Total liabilities and stockholders equity 5 31,080 66,000 36,000 56,900 $ 34,900 Net plant and equipment Total assets Sales for 20x2 were $275,000, and the cost of goods sold was 60 percent of sales Selling and administrative expense was $27,500 Depreciation expense was 9 percent of plant and equipment (gross) at the beginning of the year Interest expense for the notes payable was 11 percent, while the interest rate on the bonds payable was 13 percent. This interest expense is based on December 31, 20x1 balances. The tax rate averaged 20 percent $3,100 in preferred stock dividends were paid and $5,356 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding Dunng 20x2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 11 percent A new machine was purchased on December 31, 20x2 at a cost of $46,000 Accounts payable increased by 35 percent Notes payable increased by 57100 and bonds payable decreased by $15,500, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change. 0. Prepare an income statement for 20x2. (Round EPS answer to 2 decimal places.) Baxter Corporation 20X2 Income Statement $ 0 CHU VILC yCar HIC PICicicu SWLR, LUILLITI SLUCA, nu copil pou ALESSUI NOI OLLUTILS a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.) Baxter Corporation 20x2 Income Statement $ 0 $ 0 S 0 $ 0 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 abilities Stockholders' Equity Fored assets Net plant and equipment 5 0 $ 0 Total assets Total stockholders' equity 0 Total liabilities and stockholders' equity 5