Coverdale LP$.$ wishes to prepare a pro forma balance sheet for December $31,2024.$ The firm expects $2024$ sales to

total $$3,000,000.$ The following information has been gathered:

A minimum cash balance of $$50,000$ is desired.

Marketable securities are expected to remain unchanged.

Accounts receivable represent $10\%$ of sales.

Inventories represent $12\%$ of sales.

A new machine costing $$90,000$ will be acquired during $2023.$ Total depreciation for the year will be $$32,000.$

Accounts payable represent $14\%$ of sales.

Acoruals, other current liabilities, long$-$term debt, and common stock are expected to remain unchanged.

The firm's net profit margin is $4\%,$ and it expects to pay out $$70,000$ in cash dividends during $2023.$

The December $31,2023$ balance sheet follows.

a Use the judgmental approach to prepare a proforma balance sheet dated December $31,2024,$ for Coverdale LP$.$

b How much, if any, additional financing will Coverdale LP$.$ require in $2024?$ Discuss.

c Could Coverdale LP$.$ adjust its planned $2024$ dividend to avoid the situation described in part b$?$ Explain how.

Answers $($insert your answers in the highlighted cells; use cell references, equations, and functions wherever

a

Coverdale LP$.$ Pro Forma Balance Sheet as of December $31,2024$

b

c