The balance sheets of Petrello Company and Sanchez Company as of January 1, 2014, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To...

The balance sheets of Petrello Company and Sanchez Company as of January 1, 2014, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To effect the merger, Petrello Company is to exchange its unissued common stock for all the outstanding shares of Sanchez Company in the ratio of 1/2 share of Petrello for each share of Sanchez. Market values of the shares were agreed on as Petrello, $52; Sanchez, $26. The fair values of Sanchez Company’s assets and liabilities are equal to their book values with the exception of plant and equipment, which has an estimated fair value of $707,190.

		Petrello		Sanchez
Cash		$498,860		$220,000
Receivables		495,790		237,690
Inventories		2,104,300		252,560
Plant and equipment (net)		3,818,630		853,200
Total assets		$6,917,580		$1,563,450
Current Liabilities		$1,209,800		$318,670
Common stock ($16 par value)		3,563,480		800,000
Other contributed capital		369,700		—0—
Retained earnings		1,774,600		444,780
Total equities		$6,917,580		$1,563,450

Prepare a balance sheet for Petrello Company immediately after the merger.
(List assets in order of liquidity.)

PETRELLO COMPANY Balance Sheet January 1, 2014
Assets
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings			$
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity			$
Liabilities and Stockholders' Equity
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings			$
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
CashCommon StockGoodwillInventoriesLiabilitiesOther Contributed CapitalPlant and Equipment (net)ReceivablesRetained Earnings
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity			$