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 Net plant and equipment Total assets Liabilities $ 12,000 Accounts payable 17,000 Notes payable 27,000 Bonds payable 12,200 Stockholders' Equity Preferred stock $ 252,000 (50,400) Common stock Paid in Capital $201,600 Retained earnings $ 14,000 22,000 52,000 $ 22,000 57,000 27,000 75,800 $ 269,800 Total liabilities and stockholders' equity $ 269,800 Sales for 20X2 were $230,000, and the cost of goods sold was 60 percent of sales. Selling and administrative expense was $23,000. Depreciation expense was 10 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 12 percent, while the interest rate on the bonds payable was 14 percent. This interest expense is based on December 31, 20X1 balances. The tax rate averaged 30 percent. $2,200 in preferred stock dividends were paid, and $3,836 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 12 percent. A new machine was purchased on December 31, 20X2, at a cost of $37,000. Accounts payable increased by 30 percent. Notes payable increased by $6,200 and bonds payable decreased by $11,000, 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.) Baxter Corporation 20X2 Income Statement Sales $ 230,000 Cost of goods sold 138,000 Gross profit S 92,000 Selling and administrative expense 23,000 Depreciation expense 25,200 Operating profit S 43,800 Interest expense $ 43,800 $ 43,800 Earnings available to common stockholders $ 43,800