For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows Balance Sheet Liabilities Current Assets $19,200 Accounts payable 10,000 Notes payable 28,000 Bonds payable 14,300 Cash $16,100 25,500 50,600 Accounts receivable Inventory Prepaid expenses Capital Assets Shareholders' Equity $75,000 132,900 Plant and equipment (gross) Less: Accumulated amortization $283,000 54,400 Retained earnings Common stock Net plant and equipment 228,600 Total assets $300,100 Total liabilities and shareholders' equity $300,100 Sales for 20XY were $302,000, with cost of goods sold being 66 percent of sales. Amortization expense was 17 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 13 percent, while interest on the notes payable was 18 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $27600, 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 19 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 $13,000 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $3,992 and bonds payable decreased by 12,200. 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 $ 302000 Sales Cost of good sold 199320 Gross profit 102680 Interest expense 6578 Amortization expense 38862 Operating profit 6578 27600 Selling and administrative expense 25050 Earnings before taxes Taxes 4509 Earnings after taxes $ 20541 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 Liabilities Current Assets Cash 19200 $ 20125 Accounts payable 29492 Accounts receivable 11900 Notes payable 3320Bonda payable Inventory 38400 Prepaid expenses 14300 19200 $ 20125 Liabilities Current assets Capital assets Shareholders' equity $318000 Plant and Equipment Retained earnings 140441 Add: Accumulated amortization 75000 93262 Common stock 224738 Net plant and equipment 303458 Total liabilities and shareholders equitys 303458 Total assets 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.) Gardner Corporation Flows Statement of Cash For the Year Ended December 31, 20XY Operating Activities: Net income $ 20541 Add items not requiring an outlay of cash: Amortization expense 38862 59403 Cash flow from operations Changes in non-cash working capital: Increase in accounts receivable 1900 5320 Increase in inventory Increase in accounts payable 4025 Increase in notes payable 3992 797 Net Change in non-cash working capital 60200 Cash provided by operating activities Investing activities: 35000 Increase in plant and equipment Cash used in Investing activities 35000 Financing activities: Decrease in bonds payable 12200 Common stock dividends paid 13000 Cash used in financing activities 252001 Net increase in cash 10000 Cash, beginning of year $10000 Cash, end of year