For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:

Current Assets			Liabilities
Cash	$	28,000	Accounts payable	$	30,000
Accounts receivable		33,000	Notes payable		38,000
Inventory		43,000	Bonds payable		68,000
Prepaid expenses		13,800
Fixed Assets			Stockholders Equity
Gross plant and equipment	$	268,000	Preferred stock	$	38,000
Less: Accumulated depreciation		53,600	Common stock		73,000
			Paid in Capital		43,000
Net plant and equipment	$	214,400	Retained earnings		42,200
Total assets	$	332,200	Total liabilities and stockholders equity	$	332,200

Sales for 20X2 were $310,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $31,000. 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 35 percent. $3,800 in preferred stock dividends were paid, and $6,150 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 $53,000. Accounts payable increased by 30 percent. Notes payable increased by $7,800 and bonds payable decreased by $19,000, 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 $ 0 $ 0 EA 0 $ 0 EA 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 Assets Liabilities and Stockholders' Equity Current Assets Total current assets $ 0 0 Total liabilities Stockholders' Equity Fixed assets: Net plant and equipment $ 0 $ 0 Total stockholders' equity 0 Total liabilities and stockholders' equity Total assets 0