3. Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2016. The firm ts 2016 sales to total $3,000,000. The following information has been gathered: expects 1. A minimum cash balance of $50,000 is desired. 2. Marketable securities are expected to remain unchanged 3. Accounts receivable represent 10% of sales. 4. Inventories represent 12% of sales. 5. A new machine costing $90,000 will be acquired during 2016. Total depreciation for the year will be $32,000. 6. Accounts payable represent 14% of sales. 7. Accruals, other current liabilities, long-term debt, and common stock are expected to remain unchanged. The firm's net profit margin is 4%, and it expected to pay out $70,000 in cash dividends during 2016. The December 31, 2015, balance sheet follows. 8 Leonard Industries Balance Sheet December 31, 2015 Assets Cash Marketable securities S 15,000 Accruals Accounts receivable S 255,000 Other current liabilities Inventories Liabilities and stockholders' equity S 45,000 Accounts payable S 395,000 S 60,000 S 30,000 $ 485,000 S 350,000 S 835,000 S 200,000 S 220,000 Total liabilities and stockholders' equity 1,255,000 S 340,000 Total current liabilities Total current assets S 655,000 Long-term debt Net fixed assets S 600,000 Total liabilities S 1,255,000 Common stock Total assets Retained carnings Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2016, for Leonard Industries. Leonard Industries Pro Forma Balance Sheet December 31, 2016 Assets Cash Marketable securities Accounts receivable Inventories Liabilities and stockholders' equit Accounts payable Accruals Other current liabilities Total current liabilities Long-term debt Total current assets Net fixed assets Total liabilities Common stock Retained earni External financing required Total assets Total liabilities and stockholders' equity