The Verbrugge Publishing Company's 2016 balance sheet and income statement are as follows (in millions of dollars) Balance Sheet Current assets Net fixed assets Goodwill $168 Current liabilities $42 153 Advance payments 78 15 Reserves $6 preferred stock, $112.50 par value (1,200,000 shares) $10.50 preferred stock, no par, callable at $150 (60,000 shares) Common stock, $1.50 par value (6,000,000 shares) Retained earnings 135 9 9 57 $336 Total assets $336 Total claims Income Net sales Operating expense Net operating income Other income EBT Taxes (50%) Net income Dividends on $6 preferred Dividends on $10.50 preferred Income available to common stockholders Verbrugge and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $6 preferred will be exchanged for one share of $2.80 preferred with a par value of $35.50 plus one 8% subordinated income debenture with a par value of $77. The $10.50 preferred issue will be retired with cash $540.0 516.0 24.0 3.0 $27.0 13.5 $13.5 7.2 0.6 $5.7