The balance sheets of Petrello Company and Sanchez Company as of January 1, 2014, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To effect the merger, Petrello Company is to exchange its unissued common stock for all the outstanding shares of Sanchez Company in the ratio of 1/2 share of Petrello for each share of Sanchez. Market values of the shares were agreed on as Petrello, $46; Sanchez, $23. The fair values of Sanchez Company's assets and liabilities are equal to their book values with the exception of plant and equipment, which has an estimated fair value of $723,940. Petrello Sanchez Cash $514,210 $207,900 220,420 Receivables 502,930 Inventories 2,130,300 224,420 Plant and equipment (net) 3,842,110 800,400 $6,989,550 $1,453,140 Total assets Current Liabilities $1,144,400 $351,380 800,000 Common stock ($16 par value) Other contributed capital 3,752,890 372,900 -0- Retained earnings 1,719,360 301,760 Total equities $6,989,550 $1,453,140 Prepare a balance sheet for Petrello Company immediately after the merger. (List assets in order of liquidity.) Prepare a balance sheet for Petrello Company immediately after the merger. (List assets in order of liquidity.) PETRELLO COMPANY Balance Sheet January 1, 2014 Assets Liabilities and Stockholders' Equity $