Please help with answer (b). Answer (a) and word problem provided just for context. Thanks in advance.

For December 31,201, the balance sheet of Baxter Corporation was as follows: Sales for 202 were $280,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $28,000. Depreciation expense was 10 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 12 percent, while the interest rate on the bonds payable was 14 percent. This interest expense is based on December 31 , 201 balances. The tax rate averaged 30 percent. $3,200 in preferred stock dividends were paid, and $7,016 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 202, the cash balance and prepaid expenses balances were unchan in 12 percent. A new machine was purchased on December 31,202, at a cost of $47,000. Accounts payable increased by 25 percent. Notes payable increased by $7,200 and bonds payable decreased by $16,000, 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 202. Note: Round EPS answer to 2 decimal places. Input all your answers as positive values b. Prepare a statement of retained earnings for 202. Note: Input all your answers as positive values