For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: Cash 27,000 Accounts payable $ 29,000 Accounts receivable Prepaid expenses Gross plant and equipment 42,000 Bonds payable 67,000 Fsed Assets Stockholders' Equity 267000 Preferred stodk 53400 Common stock 213800Retained eamings 328,300 Total labilities and stockholders equity Less: Accumulated depreciation Paid in Capital Net plant and equipment 328,300 Sales for 20x2 were $305,000, and the cost of goods sold was 55 percent of sales. Seling and administrative expense was $30,500. Depreciation expense was 10 percent of plant and equipment (gross) at the begi ing of the year Interest expense for the notes payable was 12 percent, while the ine est rate on the bonds payable was 14 percent This interest expense is based on December 3120X1 balances The tax rate averaged 30 percent $3,700 in preferred stock dividends were paid, and $3,481 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 $52,000 Accounts payable increased by 20 percent. Notes payable increased by $7,700 and bonds payable decreased by $18,500, 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 Baxter Corporation Gross proft 137 200 proft stock dividends