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 $119.00, pays a dividend of $8 per share, and that there are 1,200,000 shares of this class outstanding. Preferred stock B is callable at $155, has 60,000 shares outstanding, and pays a dividend of $12.00 per share. The companys common stock has a par value of $1.50 and has 6,000,000 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	$252.00	Current liabilities	$63.00	Net sales	$810.00
Net fixed assets	229.50	Advance payments	117.00	Operating expense	774.00
Goodwill	22.50	Reserves	9.00	Net operating income	36.00
		Class A Preferred stock	142.80	Other income	4.50
		Class B Preferred stock	9.30	EBT	40.50
		Common stock	9.00	Taxes (50%)	20.25
		Retained earnings	153.90	Net income	20.25
				Dividends on Class A Preferred stock	10.80
				Dividends on Class B Preferred stock	0.90
Total assets	$504.00	Total claims	$504.00	Income available to common stockholders	$8.55

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 $39.67 that pays a dividend of $3.20 per share, plus one 11% subordinated income debenture that carries a par value of $79.33.
	Preferred stock B that pays a dividend of $12.00 per share will be settled with cash at a call price of $155.

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	$63.00	Net sales	$810.00
Net fixed assets	229.50	Advance payments	117.00	Operating expense	774.00
Goodwill	22.50	Reserves	9.00	Net operating income	36.00
		Subordinated debenture		Other income	4.50
		$3.20 preferred stock C claims		EBIT	40.50
		Common stock	9.00	Interest expense
		Retained earnings	153.90	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.