If the AC cord can be removed from the back of the radio, then there is a mechanical lever inside where the AC cord plugs into the radio. That lever will cause the battery connection inside to be open (or disconnected) so that it will run off AC and not blow up the batteries. That is why it won't run on batteries when that cord is plugged in.
If it runs on batteries but not AC, find another cord to try. Most radios use about the same cord. If a second cord still doesn't make it work, it's most likely a fuse inside for the AC circuitry. they are usually mounted on a circuit board inside the radio right near where the AC cord plugs into the radio.
You should be able to take the radio apart (while it's unplugged from AC of'course) and find that fuse. If your good with a soldering iron you can replace the fuse. Replacements can be found at Radio Shack. If your reading these instructions to begin with, your probably not good with a soldering iron and you should just buy a new radio. Good luck.
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