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1. current assets:$327.6, $409.5, $614.25, $450.45;

2. subordinated: 56.70, 113.400, 147.42, 136.08; 3.$3.2 perferred stock C: 56.700, 34.02, 79.38, 39.69;

3. interest exp: 10.21, 5.1, 13.27, 12.25;

4.EBT: 54.23, 57.29, 55.25, 62.4;

5.Taxes: 28.65, 27.12, 27.63, 31.2;

6. Net income: 31.2, 27.62, 28,64, 27.11;

7.Dividends on: 47.63, 4.48, 111.13, 55.57;

8. Income available:24.16, -28.46, -16.43, 83.51;

9: Total asset:$1034.25, $580.65, $829.5, $747.6;

10. Total claims: 747.6, 1034.25, 580.65, 829.5;

11: Increase, decrease

Ch 24: Assignment - Bankruptcy, Reorganization, and Liquidation Puyol Corp. has reported losses for the past three years and has finally decided to file for bankruptcy. You know that the company has preferred stock A that has a par value of $121.50, pays a dividend of $8 per share, and that there are 1,400,000 shares of this class outstanding. Preferred stock B is callable at $150, has 70,000 shares outstanding, and pays a dividend of $10.50 per share. The company's common stock has a par value of $2.00 and has 7,000,000 shares outstanding. You have also collected the following data from the company's financial statements: Puyol Corp. Data from Financial Statements (Millions of dollars) Balance Sheet Income Statement Current assets $420.00 Current liabilities $105.00 Net sales $1,350.00 Net fixed assets 382.50 Advance payments 195.00 Operating expense 1,290.00 Goodwill 37.50 Reserves 15.00 Net operating income 60.00 Class A Preferred stock 170.10 Other income 7.50 Class B Preferred stock 10.50 67.50 Common stock 14.00 Taxes (50%) 33.75 Retained earnings 330.40 Net income 33.75 Dividends on Class A Preferred stock 18.00 Dividends on Class B Preferred stock 1.50 Total assets Total claims $840.00 $840.00 $14.25 Income available to common stockholders Puyol's creditors have agreed to a voluntary reorganization plan with the following settlements: Each share of preferred stock A will be exchanged for one share of preferred stock C with a par value of $40.50 that pays a dividend of $3.20 per share, plus one 9% subordinated income debenture that carries a par value of $81.00. Preferred stock B that pays a dividend of $10.50 per share will be settled with cash at a call price of $150. Based on the information you have, calculate and fill in the values in the pro-forma financial statements of Puyol Corp. for the reorganization plan. Puyol Corp. Pro-Forma Financial Statements Based on Reorganization Plan (Millions of dollars) Balance Sheet Income Statement $105.00 $1,350.00 Current liabilities Net sales Current assets 195.00 1,290.00 Operating expense Net fixed Advance payments 382.50 assets 60.00 Goodwill 37.50 Reserves 15.00 Net operating income Other income 7.50 Subordinated debenture EBIT 67.50 $3.20 preferred stock C claims Interest evnense Common stock 14 nn Ch 24: Assignment - Bankruptcy, Reorganization, and Liquidation X Puyol Corp. Pro-Forma Financial Statements Based on Reorganization Plan (Millions of dollars) Balance Sheet Income Statement Current assets Current liabilities $105.00 Net sales $1,350.00 Net fixed 382.50 Advance payments 195.00 Operating expense 1,290.00 assets Goodwill 37.50 15.00 Net operating income 60.00 Reserves Subordinated debenture Other income 7.50 $3.20 preferred stock C EBIT 67.50 claims Common stock 14.00 Interest expense Retained earnings 330.40 EBT Taxes (50%) Net income Dividends on $3.20 preferred Total assets Total claims Income available to common stockholders Thus, income available for common stockholders will after the reorganization takes place