Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

( 1 ) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 1 2 . 5 % ,

(1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.5%, Inventory; 18.3%; Accounts payable, 14.3%; Net profit margin, 2.9%.
(2) Marketable securities and other current liabilities will remain unchanged.
(3) Peabody desires a minimum cash balance of $484,000.
(5) Accruals will rise to $498,000 by the end of 2024.
(6) There will be no sale or retirement of long-term debt.
(7) No sale or repurchase of common stock is expected.
(8) The dividend payout of 50% of net profits will continue.
(9) The sales forecast predicts $11.6 million in 2023 and $11.5 million in 2024.
(10) The December 31,2022, balance sheet is here .
a. Prepare a pro forma balance sheet dated December 31,2024.
b. Discuss the financing changes suggested by the statement prepared in part (a).
a. Prepare a pro forma balance sheet dated December 31,2024.
Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31,2024 below: (Round to the nearest dollar.)
Pro Forma Balance Sheet
Peabody & Peabody
Data table
December 31,2024
Assets
Current assets
Cash
Marketable securities
Accounts receivable
Inventories
Total current assets
Net fixed assets
Total assets
(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
Peabody & Peabody Balance Sheet December 31,2022
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sports Finance And Management Real Estate Media And The New Business Of Sport

Authors: Jason A. Winfree, Mark S. Rosentraub, Brian M Mills, Mackenzie Zondlak

2nd Edition

1138341819, 9781138341814

More Books

Students also viewed these Finance questions

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago