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

Balance Sheet
Current Assets		Liabilities
Cash	$19,600	Accounts payable	$15,800
Accounts receivable	17,000	Notes payable	20,400
Inventory	32,700	Bonds payable	51,500
Prepaid expenses	15,300
Capital Assets		Shareholders Equity
Plant and equipment (gross)	$345,000	Common stock	$75,000
Less: Accumulated amortization	53,900	Retained earnings	213,000
Net plant and equipment	291,100
Total assets	$375,700	Total liabilities and shareholders equity	$375,700

Sales for 20XY were $243,000, with cost of goods sold being 62 percent of sales. Amortization expense was 13 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 20 percent, while interest on the notes payable was 10 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $23,700, 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 20 percent, and accounts payable increased by 25 percent. A new machine was purchased on December 31, 20XY, at a cost of $30,000. A cash dividend of $14,000 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $7,202 and bonds payable decreased by 10,190. 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
Sales Correct	$ 243000 Numeric ResponseEdit Unavailable.243000correct.
Cost of good sold Correct	150660 Numeric ResponseEdit Unavailable.150660correct.
Gross profit Correct	92340 Numeric ResponseEdit Unavailable.92340correct.
Selling and administrative expense Correct	23700 Numeric ResponseEdit Unavailable.23700correct.
Amortization expense Correct	37843 Numeric ResponseEdit Unavailable.37843correct.
Operating profit Correct	30797 Numeric ResponseEdit Unavailable.30797correct.
Interest expense Correct	12340 Numeric ResponseEdit Unavailable.12340correct.
Earnings before taxes Correct	18457 Numeric ResponseEdit Unavailable.18457correct.
Taxes Correct	3322 Numeric ResponseEdit Unavailable.3322correct.
Earnings after taxes Correct	$ 15135 Numeric ResponseEdit Unavailable.15135correct.

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:
Cash Correct		$ 19600 Numeric ResponseEdit Unavailable.19600correct.		Accounts payable Correct	$ 19750 Numeric ResponseEdit Unavailable. 19750 correct.
Accounts receivable Correct		20400 Numeric ResponseEdit Unavailable.20400correct.		Notes payable Correct	27602 Numeric ResponseEdit Unavailable. 27602 correct.
Inventory Correct		39240 Numeric ResponseEdit Unavailable.39240correct.		Bonds payable Correct	41310 Numeric ResponseEdit Unavailable. 41310 correct.
Prepaid expenses Correct		15300 Numeric ResponseEdit Unavailable.15300correct.
Total current assets		$ 94540 Numeric ResponseEdit Unavailable.94540correct.		Total liabilities	$ 88662 Numeric ResponseEdit Unavailable. 88662 correct.
Capital assets				Shareholders equity
Plant and Equipment Correct		$ 291100 Numeric ResponseEdit Unavailable.291100incorrect.		Retained earnings Correct	$ 151135 Numeric ResponseEdit Unavailable. 151135 incorrect.
Less: Accumulated amortization Correct		37843 Numeric ResponseEdit Unavailable.37843incorrect.		Common stock Correct	75000 Numeric ResponseEdit Unavailable. 75000 correct.
Net plant and equipment		253257 Numeric ResponseEdit Unavailable.253257incorrect.
Total assets		$ 383155 Numeric ResponseEdit Unavailable.383155incorrect.		Total liabilities and shareholders' equity	$ 385640 Numeric ResponseEdit Unavailable. 385640 incorrect.

c. Prepare a statement of cash flows for the year ending December 31, 20XY. (Record the change in the notes payable under the operating activity of Cash flow. Do not leave any empty spaces; input a 0 wherever it is required. Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.)

Gardner Corporation Statement of Cash Flows
For the Year Ended December 31, 20XY
Operating Activities:
Net income Correct		$ 15135 Numeric ResponseEdit Unavailable.15135correct.
Add items not requiring an outlay of cash:
Amortization expense Correct		37843 Numeric ResponseEdit Unavailable.37843correct.
Cash flow from operations		52978 Numeric ResponseEdit Unavailable.52978correct.
Changes in non-cash working capital:
Increase in accounts receivable Correct	3400 Numeric ResponseEdit Unavailable.3400incorrect.
Increase in inventory Correct	6540 Numeric ResponseEdit Unavailable.6540incorrect.
Increase in accounts payable Correct	3950 Numeric ResponseEdit Unavailable.3950correct.
Increase in notes payable Correct	7202 Numeric ResponseEdit Unavailable.7202correct.
Net Change in non-cash working capital		$ 63359 Numeric ResponseEdit Unavailable.63359incorrect.
Cash operating activities
Investing activities:
Cash Investing activities
Financing activities:
Cash financing activities
Cash, beginning of year
Cash, end of year		$