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Smith Corporation has gone through bankruptcy and is ready to emerge as a reorganized entity on December 31, 2024. On this date, the company has the following assets (fair value is based on discounting the anticipated future cash flows); The company has a reorganization value of $838,000. Smith has 52.000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $699,000 also is reported. The owners will distribute 36,100 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: - Accounts payable of $194,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, twoyear note for $36,400. - Accounts payable of $98,300 (incurred since the date on which the order for relief was granted) will be paid in the regular course of business. - Note payable-First Metropolitan Bank of $215,000 will be settled with an 8 percent, five-year note for $52,100 and 18,300 shares of the stock contributed by the owners. - Note payable-Northwestern Bank of Tulsa of $375,000 will be settled with a 7 percent, eight-year note for $115,000 and 18,300 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. Saved \begin{tabular}{|l|l|l|} \hline LIABILITIES AND STOCKHOLDERS' EQUITY & \\ \hline Current Liabilities: & & \\ \hline & & \\ \hline Long-term Liabilities: & & \\ \hline & & \\ \hline & & \\ \hline Stockholders' Equity: & & \\ \hline Total liabilities & & \\ \hline \end{tabular}

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