(1) A minimum cash balance of $49.700 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 9.9% of sales. (4) Inventories represent 12.2% of sales. (5) A new machine costing $90,500 will be acquired during 2020. Total depreciation for the year will be $32,400, (6) Accounts payable represent 14.5% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock are expected to remain unchanged. (8) The firm's net profit margin is 3.7%, and it expects to pay out $70,400 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows . a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2020, for Leonard Industries. b. How much, if any, additional financing will Leonard Industries require in 2020? Discuss. c. Could Leonard Industries adjust its planned 2020 dividend to avoid the situation described in part b? Explain how. Leonard Industries December 31, 2020 Assets Current assets i Data Table Cash Marketable securities Accounts receivable (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Inventories Total current assets Net fixed assets Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity $45,400 Accounts payable 15,400 Accruals 255,400 Other current liabilities 340,400 Total current liabilities $656,600 Long-term debt 599,800 Common stock Retained earnings $1,256,400 Total liabilities and stockholders' equity $394,600 60,100 30,100 $484,800 351,800 199,700 220,100 $1,256,400 Enter any number in the edit fields and then click Check Answer. Total assets parts remaining (1) A minimum cash balance of $49.700 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 9.9% of sales. (4) Inventories represent 12.2% of sales. (5) A new machine costing $90,500 will be acquired during 2020. Total depreciation for the year will be $32,400, (6) Accounts payable represent 14.5% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock are expected to remain unchanged. (8) The firm's net profit margin is 3.7%, and it expects to pay out $70,400 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows . a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2020, for Leonard Industries. b. How much, if any, additional financing will Leonard Industries require in 2020? Discuss. c. Could Leonard Industries adjust its planned 2020 dividend to avoid the situation described in part b? Explain how. Leonard Industries December 31, 2020 Assets Current assets i Data Table Cash Marketable securities Accounts receivable (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Inventories Total current assets Net fixed assets Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity $45,400 Accounts payable 15,400 Accruals 255,400 Other current liabilities 340,400 Total current liabilities $656,600 Long-term debt 599,800 Common stock Retained earnings $1,256,400 Total liabilities and stockholders' equity $394,600 60,100 30,100 $484,800 351,800 199,700 220,100 $1,256,400 Enter any number in the edit fields and then click Check Answer. Total assets parts remaining
