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): Book Value Fair Value Accounts receivable $ 23,200 $ 21,200 Inventory 159,000 127,000 Land and buildings 272,000 300,000 Machinery 161,000 138,000 Patents 134,000 159,000 The company has a reorganization value of $838,000. Smith has 52,000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $699,000 also is reported. The owners will distribute 36,100 shares of this stock as part of the reorganization plan. The companys liabilities will be settled as follows: Accounts payable of $194,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two-year note for $36,400. Accounts payable of $98,300 (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 $215,000 will be settled with an 8 percent, five-year note for $52,100 and 18,300 shares of the stock contributed by the owners. Note payableNorthwestern Bank of Tulsa of $375,000 will be settled with a 7 percent, eight-year note for $115,000 and 18,300 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 1 of 1 Total 1 of 1 Prev