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p 13-43 0 Saved Help Smith Corporation has gone through bankruptcy and is ready to emerge as a reorganized entity on December 31, 2017. On this date, the company has the following assets (fair value is based on discounting the anticipated future cash flows): 10 Book Value Fair Value points Accounts receivable $ 22 , 2 00 $ 20 , 200 Inventory 150 ,000 118 ,000 Land and buildings 280 , 000 308 , 000 Machinery 152 ,000 129 ,000 930W Patents 111 , 000 136 , 000 I Print References The company has a reorganization value of $850,000. Smith has 52,300 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $675,000 also is reported. The owners will distribute 33,000 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: . Accounts payable of $197,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two- year note for $36,800. . Accounts payable of $98,700 (incurred since the date on which the order for relief was granted) will be paid in the regular course of business. . Note payableFirst Metropolitan Bank of $216,000 will be settled with an 8 percent, ve-year note for $50,100 and 16,500 shares of the stock contributed by the owners. . Note payableNorthwestern Bank of Tulsa of $366,000 will be settled with a 7 percent, eight-year note for $130,000 and 16,500 shares of the stock contributed by the owners. P 13-43 0 Saved 1 1). Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. 10 points ASSETS Current Assets: eBaok Print References Land, Buildings, and Equipment: Intangible Assets: Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: P 13-43 i Saved Total assets LIABILITIES AND STOCKHOLDERS' EQUITY 10 Current Liabilities: points eBook Long term Liabilities: Print References Total liabilities Stockholders' Equity: Total liabilities and stockholders' equity Mc Graw Prev of 1 Next