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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
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
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