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 $ $15,700$

Accounts Receivable $($net$)66,600$

Inventory $102,200$

Property, Plant and Equipment $621,200$

Accumulated Depreciation $ $141,700$

Accounts Payable $139,400$

Notes Payable, $10\%168,300$

Bonds Payable, $12\%251,400$

Interest Payable $48,600$

Preferred Stock $51,400$

Common Stock, $$1$ par $51,400$

Additional Paid$-$In Capital $76,000$

Retained Earnings $($deficit$)122,500$

Total $ $928,200$ $ $928,200$

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 $$247,600$ is generated during the year.

Cost of goods sold is $$168,300$ as a result of cost reduction programs implemented during the year.

Selling, operating, and administrative expenses are $$51,400$ for the year.

Interest expense is $$5,000.$ Contractual interest would have been $$53,600$ for the year.

Reorganization items include $$15,200$ in fees paid to professionals and $$4,100$ of interest earned on cash accumulated as a result of the Chapter $11$ proceedings.

The income tax of $$3,400$ on operating income was paid during the year.

Discontinued operations included a $$16,400$ loss on operations, net of tax, and a $$8,100$ 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 $$267,400$ is received from customers. This includes $$19,800$ received on the accounts receivable that were outstanding prior to filing the petition.

A total of $$207,700$ is paid to suppliers, employees, and others for operations.

The current interest expense of $$5,000$ on postpetition debt is paid during the year.

Professional fees of $$15,200$ are paid, and interest on cash accumulations of $$4,100$ is received.

Net cash used by discontinued operations, excluding the sale of assets, is $$4,100.$

The proceeds from the sale of the discontinued assets is $$19,800.$ The bankruptcy court administered this sale.

Hobbes borrowed $$11,400$ in short$-$term debt as part of a financing plan administered by the court.

The court authorized a payment of $$11,400$ on the bonds payable. The ending cash balance of $$75,000$ represents an increase of $$59,300$ during the year.

Other Data for $20$X$2$:

Careful working capital management reduced the ending inventory to $$88,700.$ 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 $$461,900.$

In addition to the $$11,400$ short$-$term borrowings that are part of the court$-$approved financing plan, Hobbes has postpetition accounts payable of $$8,300.$

Required:Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Prepare the balance sheet for the company as of December $31,20102.$

Note: Amaunts ta be dectucted should be indicated by minus sign.

$\backslash$table$[[$HOBEES CONPANY$],[($Dabtor$-$In$-$Pacsacsion$)],[$Balanoe Bhest$],[$Daoumber $$1,20102$

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