For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Balance Sheet Current Assets Liabilities Cash $14,700 Accounts receivable Accounts payable 15,100 Notes payable Inventory Prepaid expenses 25,100 12,000 Bonds payable $13,100 28,500 40,000 Capital Assets Shareholders' Equity Plant and equipment (gross) $200,000 Less: Accumulated amortization 50,000 Common stock Retained earnings $75,000 60,300 Net plant and equipment 150,000 Total assets $216,900 Total liabilities and shareholders' equity $216,900 Sales for 20XY were $200,000, 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 11 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $20,000, 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 20 percent. A new machine was purchased on December 31, 20XY, at a cost of $25,000. A cash dividend of $12,200 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $2,405 and bonds payable decreased by 10,510. The common stock account did not change.