For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows:

Balance Sheet
Current Assets		Liabilities
Cash	$17,000	Accounts payable	$14,000
Accounts receivable	18,200	Notes payable	22,400
Inventory	26,400	Bonds payable	51,900
Prepaid expenses	15,200
Capital Assets		Shareholders Equity
Plant and equipment (gross)	$293,000	Common stock	$75,000
Less: Accumulated amortization	51,800	Retained earnings	154,700
Net plant and equipment	241,200
Total assets	$318,000	Total liabilities and shareholders equity	$318,000

Sales for 20XY were $263,000, with cost of goods sold being 59 percent of sales. Amortization expense was 18 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 17 percent, while interest on the notes payable was 12 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $27,800, and the tax rate averaged 18 percent.

During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 15 percent, and accounts payable increased by 29 percent. A new machine was purchased on December 31, 20XY, at a cost of $38,000. A cash dividend of $16,000 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $3,490 and bonds payable decreased by 10,860. The common stock account did not change.

a. Prepare an income statement for 20XY. (Input all answers as positive values.)

Gardner Corporation Income Statement For the Year Ending December 31, 20XY
(Click to select) Sales Selling and administrative expense Cost of good sold Interest expense Amortization expense Taxes	$
(Click to select) Taxes Amortization expense Sales Interest expense Selling and administrative expense Cost of good sold
(Click to select) Gross profit Gross loss
(Click to select) Selling and administrative expense Interest expense Cost of goods sold Sales Taxes
(Click to select) Amortization expense Interest expense Cost of goods sold Sales Taxes
(Click to select) Operating profit Operating loss
(Click to select) Selling and administrative expense Depreciation expense Interest expense Cost of goods sold Taxes Sales
(Click to select) Earnings after taxes Earnings before taxes
(Click to select) Sales Earnings after taxes Interest expense Cost of goods sold Selling and administrative expense Depreciation expense Taxes Preferred stock dividends Earnings before taxes
(Click to select) Earnings after taxes Earnings before taxes	$

b. Prepare a balance sheet as of December 31, 20XY. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity.)

Gardner Corporation Balance Sheet For the Year Ended December 31, 20XY
Current Assets				Liabilities
(Click to select) Inventory Cash Prepaid expenses Gross plant Accounts receivable		$		(Click to select) Common stock Retained earnings Bonds payable Notes payable Accounts payable	$
(Click to select) Accounts receivable Cash Inventory Prepaid expenses Gross plant				(Click to select) Notes payable Retained earnings Accounts payable Common stock
(Click to select) Prepaid expenses Cash Accounts receivable Gross plant Inventory				(Click to select) Bonds payable Retained earnings Accounts payable Common stock
(Click to select) Accounts receivable Prepaid expenses Inventory Gross plant Cash
Current assets		$		Liabilities	$
Capital assets				Shareholders equity
(Click to select) Plant and Equipment Accounts receivable Cash Inventory Prepaid expenses		$		(Click to select) Retained earnings Notes payable Accounts payable Bonds payable	$
(Click to select) Add: Accumulated amortization Less: Accumulated amortization Inventory Accounts receivable Cash				(Click to select) Common stock Notes payable Accounts payable Bonds payable
Net plant and equipment
Total assets		$		Total liabilities and shareholders' equity	$