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For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: Sales for 202 were $300,000, and the cost of goods sold was
For December 31, 20x1, the balance sheet of Baxter Corporation was as follows: Sales for 202 were $300,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $30,000. Depreciation expense was 9 percent of plant and equipment (gross) at the beginning of the yeac. 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 25 percent. $3,600 in preferted stock dividends were paid, and $9,410 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 202, 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 $51,000. Accounts payable increased by 25 percent. Notes payable increased by $7,600 and bonds payable decreased by $18,000, 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 202 Note: Round EPS answer to 2 decimal places. Input all your answers as positive values b. Prepare a statement of retained earnings for 202. Note: Input all your answers as positive values c. Prepare a balance sheet as of December 31,202. Note: Amounts to be deducted should be indicated with parentheses or a minus sign
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