For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Current Assets Cash Balance sheet Liabilities $10,000 Accounts payable Accounts receivable Inventory 15,000 Notes payable 25,000 Bonds payable $12,000 20,000 50,000 Prepaid expenses 12,000 Capital Assets Shareholders' Equity Plant and equipment (gross) Accumulated amortization. 250,000 s0,000 Common stock Retained earnings $75,000 105,000 Net plant and equipment 200,000 Total assets $262,000 Total liabilities and shareholders' equity $262,000 Sales for 20XY were $220,000, with cost of goods sold being 60 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 8 percent, while interest on the notes payable was 10 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $22,000, 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 10 percent, and accounts payable increased by 25 percent. A new machine was purchased on December 31, 20XY, at a cost of $35,000. A cash dividend of $12.800 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $6,000 and bonds payable decreased by $10,000. 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 Ended December 31, 20XY (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) 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.) Current assets: (Click to select) (Click to select) (Click to select) (Click to select) Total Current assets Capital assets (Click to select) (Click to select) Net plant and equipment Total assets 3 Gardner Corporation Balance Sheet For the Year Ended December 31, 20xY Liabilities: (Click to select) (Click to select) (Click to select) Total Liabilities Shareholders equity (Click to select) (Click to select) shareholders Total liabilities and shareholders' equity 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 O wherever It is required. Amounts to be deducted should be Indicated with a minus sign. Omit $ sign in your response.) Operating Activities: Click to select) Gardner Corporation Statement of Cash Flows For the Year Ended December 31, 20XY Add items not requiring an outlay of cash: (Click to select) Cash flow from operations Changes in non-cash working capital: Click to select) (Click to select)ANDERER (Click to select) V (Click to select) Net Change in non-cash working capital Cash (Click to seled operating activities Investing activities: Click to select) Cash (Click to select Investing activities Financing activities: (Click to select) Click to select) Cash (Click to select financing activities Click to select) Cash, beginning of year Cash, end of year