For December $31,20$X$1,$ the balance sheet of Baxter Corporation was as follows:

Current Assets Liabilities

Cash $ $14,000$ Accounts payable $ $16,000$

Accounts receivable $19,000$ Notes payable $24,000$

Inventory $29,000$ Bonds payable $54,000$

Prepaid expenses $12,400$

Fixed Assets Stockholders$$ Equity

Plant and equipment $($gross$)$ $ $254,000$ Preferred stock $ $24,000$

Less: Accumulated depreciation $(50,800)$ Common stock $59,000$

Paid in Capital $29,000$

Net plant and equipment $ $203,200$ Retained earnings $71,600\}$

Total liabilities and stockholders$$ equity $ $277,600$

Sales for $20$X$2$ were $$240,000,$ and the cost of goods sold was $60$ percent of sales. Selling and administrative expense was $$24,000.$ Depreciation expense was $12$ percent of plant and equipment $($gross$)$ at the beginning of the year. Interest expense for the notes payable was $8$ percent, while the interest rate on the bonds payable was $16$ percent. This interest expense is based on December $31,20$X$1$ balances. The tax rate averaged $30$ percent.

$$2,400$ in preferred stock dividends were paid, and $$5,312$ in dividends were paid to common stockholders. There were $10,000$ shares of common stock outstanding.

During $20$X$2,$ the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by $8$ percent. A new machine was purchased on December $31,20$X$2,$ at a cost of $$39,000.$

Accounts payable increased by $25$ percent. Notes payable increased by $$6,400$ and bonds payable decreased by $$12,000,$ both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.

Prepare an income statement for $20$X$2.$

Note: Round EPS answer to $2$ decimal places. Input all your answers as positive values

Prepare a statement of retained earnings for $20$X$2.$

Note: Input all your answers as positive values

Prepare a balance sheet as of December $31,20$X$2.$

Note: Amounts to be deducted should be indicated with parentheses or a minus sign.