Question: PLEASE HELP I've been stuck on this question all week and it's due soon. I really appreciate any help you can provide. . 6. Reorganization

PLEASE HELP I've been stuck on this question all week and it's due soon. I really appreciate any help you can provide.

PLEASE HELP I've been stuck on this question all week and it's.

due soon. I really appreciate any help you can provide. . 6.

6. Reorganization plan 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 $118.00, pays a dividend of $7 per share, and that there are 1,200,000 shares of this class outstanding. Preferred stock B is a callable at $155, has 60,000 shares outstanding, and pays a dividend of $12.00 per share. The company's common stock has a par value of $3.00 and has 6,000,000 shares outstanding. You have also collected the following data from the company's financial statements: Current assets Net fixed assets Goodwill $1,890.00 1,806.00 84.00 10.50 Puyol Corp. Data from Financial Statements (Millions of dollars) Balance Sheet Income Statement $588.00 Current liabilities $147.00 Net sales 535.50 Advance payments 273.00 Operating expense 52.50 Reserves 21.00 Net operating income Class A Preferred stock 141.60 Other income Class B Preferred stock 9.30 EBT Common stock 18.00 Taxes (50%) Retained earnings 566.10 Net income Dividends on Class A Preferred stock Dividends on Class B Preferred stock $1,176.00 Total claims $1,176.00 Income available to common stockholders 94.50 47.25 47.25 25.20 2.10 Total assets $19.95 Each share of preferred stock A will be exchanged for one share of preferred stock C with a par value of $39.33 that pays a dividend of $2.80 per share, plus one 8% subordinated income debenture that carries a par value of $78.67. . 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 $147.00 Net sales $1,890.00 Net fixed 535.50 Advance payments 273.00 Operating expense 1,806.00 assets Goodwill 52.50 Reserves 21.00 Net operating income 84.00 Subordinated debenture Other income 10.50 $2.80 preferred stock C EBIT 94.50 claims Common stock 18.00 Interest expense Retained earnings 566.10 EBT Taxes (50%) Net income 11911 Dividends on $2.80 preferred Total assets Total claims Income available to common stockholders Thus, income available for common stockholders will after the reorganization takes place. 6. Reorganization plan 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 $118.00, pays a dividend of $7 per share, and that there are 1,200,000 shares of this class outstanding. Preferred stock B is a callable at $155, has 60,000 shares outstanding, and pays a dividend of $12.00 per share. The company's common stock has a par value of $3.00 and has 6,000,000 shares outstanding. You have also collected the following data from the company's financial statements: Current assets Net fixed assets Goodwill $1,890.00 1,806.00 84.00 10.50 Puyol Corp. Data from Financial Statements (Millions of dollars) Balance Sheet Income Statement $588.00 Current liabilities $147.00 Net sales 535.50 Advance payments 273.00 Operating expense 52.50 Reserves 21.00 Net operating income Class A Preferred stock 141.60 Other income Class B Preferred stock 9.30 EBT Common stock 18.00 Taxes (50%) Retained earnings 566.10 Net income Dividends on Class A Preferred stock Dividends on Class B Preferred stock $1,176.00 Total claims $1,176.00 Income available to common stockholders 94.50 47.25 47.25 25.20 2.10 Total assets $19.95 Each share of preferred stock A will be exchanged for one share of preferred stock C with a par value of $39.33 that pays a dividend of $2.80 per share, plus one 8% subordinated income debenture that carries a par value of $78.67. . 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 $147.00 Net sales $1,890.00 Net fixed 535.50 Advance payments 273.00 Operating expense 1,806.00 assets Goodwill 52.50 Reserves 21.00 Net operating income 84.00 Subordinated debenture Other income 10.50 $2.80 preferred stock C EBIT 94.50 claims Common stock 18.00 Interest expense Retained earnings 566.10 EBT Taxes (50%) Net income 11911 Dividends on $2.80 preferred Total assets Total claims Income available to common stockholders Thus, income available for common stockholders will after the reorganization takes place

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