operating performance during the recent recession and needs time to reestablish profitable operations. The trial balance on January The following information applies to the 202 fiscal year ending December 31,202. Hobbes is in reorganization proceedings for the entire year, and the plan of reorganization has not been approved as of December 31,202. The debtor retained possession of the company during the year. Income Data for 202: 1. Sales revenue of $246,200 is generated during the year. 2. Cost of goods sold is $169,500 as a result of cost reduction programs implemented during the year. 3. Selling, operating, and administrative expenses are $51,100 for the year. 4. Interest expense is $4,400. Contractual interest would have been $52,600 for the year. 5. Reorganization items include $16,400 in fees paid to professionals and $4,500 of interest earned on cash accumulated as a result of the Chapter 11 proceedings. 6. The income tax of $3,200 on operating income was paid during the year. 7. Discontinued operations included a $17,700 loss on operations, net of tax, and a $7,400 gain on the sale of assets, net of tax. The bankruptcy court administered the sale of the assets under the Chapter 11 proceedings. 1. A total of $264,500 is received from customers. This includes $18,300 received on the accounts receivable that were outstanding prior to filing the petition. 2. A total of $207,000 is paid to suppliers, employees, and others for operations. 3. The current interest expense of $4,400 on postpetition debt is paid during the year. 4. Professional fees of $16,400 are paid, and interest on cash accumulations of $4,500 is received. 5. Net cash used by discontinued operations, excluding the sale of assets, is $4,500. 6. The proceeds from the sale of the discontinued assets is $18,300. The bankruptcy court administered this sale. 7. Hobbes borrowed $11,000 in short-term debt as part of a financing plan administered by the court. 8. The court authorized a payment of $11,000 on the bonds payable. The ending cash balance of $71,600 represents an increase of $55,000 during the year. Other Data for 202 : 1. Careful working capital management reduced the ending inventory to $88,300. Continued reduction is expected in 203. 2. The property, plant, and equipment, net of accumulated depreciation, at the end of 202 totaled $463,300. 3. In addition to the $11,000 short-term borrowings that are part of the court-approved financing plan, Hobbes has postpetition accounts payable of $10,300. Required: a. Prepare the income statement for Hobbes for the year ending December 31, 20X2. (Negative amounts should be indicated by a minus sign.) b. Prepare the statement of cash flows for the company for the year ending December 31,202. (Amounts to be deducted should b indicated by minus sign.) c.Prepare the balance sheet for the company as of December 31 , 20X2. (Amounts to be deducted should be indicated by minus sign.)