For December 31, 20X1, the balance sheet of BaxtelCurrent AssetsCashAccounts receivableInventoryPrepaid expensesFixed AssetsGross plant and equipmentLess: Accumulated depreciationNet plant and equipmentTotal assets$ 28,099 Accounts payable33,000 Notes payable43,000 Bonds payable13,800Stockholders' Equity$268,000 Preferred stock":(53,600) Common stockPaid in CapitalRetained earningsTotal liabilities and stockholders' equity$ 214,409$332,200Sales for 20X2 were $310,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $31,000.Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notespayable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31,20X1 balances. The tax rate averaged 35 percent.$ 30,00038,00068,000$3,800 in preferred stock dividends were paid, and $6,150 in dividends were paid to common stockholders. There were 10,000 sharesof common stock outstanding.$ 38,00073,00043,00042,200$332, 200During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9bercent. A new machine was purchased on December 31, 20X2, at a cost of $53.000.Baxter Corporation20X2 Income StatementAccounts payable increased by 30 percent. Notes payable increased by $7,800 and bonds payable decreased by $19,000, both at theend of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.)$D« Prev9 of 10hpNext >N For December 31, 20X1, the balance sheet of BaxtelCurrent AssetsCashAccounts receivableInventoryPrepaid expensesFixed AssetsGross plant and equipmentLess: Accumulated depreciationNet plant and equipmentTotal assets$ 28,099 Accounts payable33,000 Notes payable43,000 Bonds payable13,800Stockholders' Equity$268,000 Preferred stock":(53,600) Common stockPaid in CapitalRetained earningsTotal liabilities and stockholders' equity$ 214,409$332,200Sales for 20X2 were $310,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $31,000.Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notespayable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31,20X1 balances. The tax rate averaged 35 percent.$ 30,00038,00068,000$3,800 in preferred stock dividends were paid, and $6,150 in dividends were paid to common stockholders. There were 10,000 sharesof common stock outstanding.$ 38,00073,00043,00042,200$332, 200During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9bercent. A new machine was purchased on December 31, 20X2, at a cost of $53.000.Baxter Corporation20X2 Income StatementAccounts payable increased by 30 percent. Notes payable increased by $7,800 and bonds payable decreased by $19,000, both at theend of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.)$D« Prev9 of 10hpNext >N

Income Statement An accounting statement that records the expenses incurred and revenues earned for…

Current Assets Accounts receivable Eventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities $ 28,000 Accounts payable 33,000 Notes payable 43,000 Bonds payable 13,800 Stockholders' Equity $268,000 Preferred stock". (53,600) Common stock Paid in Capital Retained earnings Total liabilities and stockholders' equity $ 214,400 $ 332,200 $ 30,000 38,000 68,000 $ 38,000 73,000 43,000 42,200 $332, 200 Sales for 20X2 were $310,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $31,000. Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31, 20x1 balances. The tax rate averaged 35 percent. $3,800 in preferred stock dividends were paid, and $6,150 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9 percent A new machine was purchased on December 31, 20X2, at a cost of $53.000. Accounts payable increased by 30 percent. Notes payable increased by $7,800 and bonds payable decreased by $19,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change. a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q