On January $2,20$X$2,$ Hobbes Company files a petition for relief under Chapter $11$ of the Bankruptcy Code. Hobbes had disastrous operating performance during the recent recession and needs time to reestablish profitable operations. The trial balance on January $2,20$X$2,$ follows:

Debit Credit

Cash $ $15,200$

Accounts Receivable $($net$)66,100$

Inventory $103,700$

Property, Plant and Equipment $621,200$

Accumulated Depreciation $ $141,100$

Accounts Payable $140,000$

Notes Payable, $10\%169,700$

Bonds Payable, $12\%251,400$

Interest Payable $47,200$

Preferred Stock $50,900$

Common Stock, $$1$ par $50,900$

Additional Paid$-$In Capital $75,400$

Retained Earnings $($deficit$)120,400$

Total $ $926,600$ $ $926,600$

The following information applies to the $20$X$2$ fiscal year ending December $31,20$X$2.$ Hobbes is in reorganization proceedings for the entire year, and the plan of reorganization has not been approved as of December $31,20$X$2.$ The debtor retained possession of the company during the year.

Income Data for $20$X$2$:

Sales revenue of $$246,600$ is generated during the year.

Cost of goods sold is $$169,700$ as a result of cost reduction programs implemented during the year.

Selling, operating, and administrative expenses are $$51,000$ for the year.

Interest expense is $$4,900.$ Contractual interest would have been $$52,100$ for the year.

Reorganization items include $$15,900$ in fees paid to professionals and $$4,800$ of interest earned on cash accumulated as a result of the Chapter $11$ proceedings.

The income tax of $$4,200$ on operating income was paid during the year.

Discontinued operations included a $$16,700$ loss on operations, net of tax, and a $$7,600$ gain on the sale of assets, net of tax. The bankruptcy court administered the sale of the assets under the Chapter $11$ proceedings.

Cash Flow Data for $20$X$2$:

A total of $$264,800$ is received from customers. This includes $$18,200$ received on the accounts receivable that were outstanding prior to filing the petition.

A total of $$206,200$ is paid to suppliers, employees, and others for operations.

The current interest expense of $$4,900$ on postpetition debt is paid during the year.

Professional fees of $$15,900$ are paid, and interest on cash accumulations of $$4,800$ is received.

Net cash used by discontinued operations, excluding the sale of assets, is $$4,800.$

The proceeds from the sale of the discontinued assets is $$18,200.$ The bankruptcy court administered this sale.

Hobbes borrowed $$11,100$ in short$-$term debt as part of a financing plan administered by the court.

The court authorized a payment of $$11,100$ on the bonds payable. The ending cash balance of $$71,200$ represents an increase of $$56,000$ during the year.

Other Data for $20$X$2$:

Careful working capital management reduced the ending inventory to $$88,600.$ Continued reduction is expected in $20$X$3.$

The property, plant, and equipment, net of accumulated depreciation, at the end of $20$X$2$ totaled $$463,100.$

In addition to the $$11,100$ short$-$term borrowings that are part of the court$-$approved financing plan, Hobbes has postpetition accounts payable of $$9,100.$

Required:

Prepare the income statement for Hobbes for the year ending December $31,20$X$2.$

Prepare the statement of cash flows for the company for the year ending December $31,20$X$2.$

Prepare the balance sheet for the company as of December $31,20$X$2.$