Your task is to analyze Puyol Corp.s reorganization plan.

Puyol Corp. has reported losses for the past three years and has finally decided to file for bankruptcy. You know that the company has preferred stock A that has a par value of $121.50, pays a dividend of $8 per share, and that there are 1,400,000 shares of this class outstanding. Preferred stock B is callable at $150, has 70,000 shares outstanding, and pays a dividend of $10.50 per share. The companys common stock has a par value of $2.00 and has 7,000,000 shares outstanding.

You have also collected the following data from the companys financial statements:

Puyol Corp. Data from Financial Statements (Millions of dollars)

	Balance Sheet			Income Statement
Current assets	$420.00	Current liabilities	$105.00	Net sales	$1,350.00
Net fixed assets	382.50	Advance payments	195.00	Operating expense	1,290.00
Goodwill	37.50	Reserves	15.00	Net operating income	60.00
		Class A Preferred stock	170.10	Other income	7.50
		Class B Preferred stock	10.50	EBT	67.50
		Common stock	14.00	Taxes (50%)	33.75
		Retained earnings	330.40	Net income	33.75
				Dividends on Class A Preferred stock	18.00
				Dividends on Class B Preferred stock	1.50
Total assets	$840.00	Total claims	$840.00	Income available to common stockholders	$14.25

Puyols creditors have agreed to a voluntary reorganization plan with the following settlements:

	Each share of preferred stock A will be exchanged for one share of preferred stock C with a par value of $40.50 that pays a dividend of $3.20 per share, plus one 9% subordinated income debenture that carries a par value of $81.00.
	Preferred stock B that pays a dividend of $10.50 per share will be settled with cash at a call price of $150.

Based on the information you have, calculate and fill in the values in the pro-forma financial statements of Puyol Corp. for the reorganization plan.

Puyol Corp. Pro-Forma Financial Statements Based on Reorganization Plan (Millions of dollars)
	Balance Sheet			Income Statement
Current assets		Current liabilities	$105.00	Net sales	$1,350.00
Net fixed assets	382.50	Advance payments	195.00	Operating expense	1,290.00
Goodwill	37.50	Reserves	15.00	Net operating income	60.00
		Subordinated debenture		Other income	7.50
		$3.20 preferred stock C claims		EBIT	67.50
		Common stock	14.00	Interest expense
		Retained earnings	330.40	EBT
				Taxes (50%)
				Net income
				Dividends on $3.20 preferred
Total assets		Total claims		Income available to common stockholders	Thus, income available for common stockholders will after the reorganization takes place.