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) Accounts receivable Inventory Land and buildings Machinery Patents $ 22,08e 28,88e 128,880 385,888 139,88e 144,880 168,88e 277,880 162,880 119,88e The company has a reorganization value of $853,000 Smith has 51,000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $674,000 also is reported. The owners will distribute 31,000 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: Accounts payable of $203,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two- year note for $36,200. Accounts payable of $97100 (incurred since the date on which the order for relief was granted) will be paid in the regular course of ousiness Note payable-First Metropolitan Bank of $205.000 will be settled with an 8 percent, five-year note for $52.800 and 15,500 shares of the stock contributed by the owners. Note payable-Northwestern Bank of Tulsa of $352,000 will be settled with a 7 percent, eight-year note for $124,000 and 15.500 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. SMIIH CORPORAIION Balance Sheet December 31, 2017 ASSETS Current Assets: Accounts payable Note payable (due in 5 years) Note payable (due in 8 years) Land, Buildings, and Equipment Intangible Assets: Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Long term Liabilities Total liabilities Stockholders Equity: Total liabilities and stockholders' equity