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Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.4 million. It wishes to analyze expected performance and financing needs for 2021-2 years ahead. Given the following information, respond to parts a. and b. (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable: 12.1%, Inventory: 17.8%: Accounts payable, 14.1%; Net profit margin, 3.3%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $476,000 is desired. (4) A new machine costing $649,000 will be acquired in 2020, and equipment costing $848,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285,000, and in 2021 $390,000 of depreciation will be taken (5) Accruals are expected to rise to $502,000 by the end of 2021. (6) No sale or retirement of long-term debt is expected. (7) No sale or repurchase of common stock is expected (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.8 million in 2020 and $11.3 million in 2021. A Data Table (10) The December 31, 2019, balance sheet is here a. Prepare a pro forma balance sheet dated December 31, 2021. b. Discuss the financing changes suggested by the statement prepared in part (a). (Click on the loon here @ In order to copy the contents of the data table below into a spreadsheet.) December 31, 2021 Leonard Industries Balance Sheet December 31, 2019 Assets Assets Liabilities and Stockholders' Equity Current assets Cash $403,000 Accounts payable $1,400,000 Cash $ Marketable securities 198,000 Accruals 400,000 Accounts receivable 1,201,000 Other current liabilities 80,400 Marketable securities $ Inventories 1,795,000 Total current liabilities $1,680,400 Accounts receivable $ Total current assets $3,597,000 Long-term debt 1.999.600 Inventories Net fixed assets 4,001,000 Common stock 3.718,000 Total liabilities and Total current assets $ Total assets $7,598,000 stockholders' equity $7,598,000 Nel fixed assets Total assets $ Print Done Enter any number in the edit fields and then click Check Answer. Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.4 million. It wishes to analyze expected performance and financing needs for 2021-2 years ahead. Given the following information, respond to parts a. and b. (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable: 12.1%, Inventory: 17.8%: Accounts payable, 14.1%; Net profit margin, 3.3%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $476,000 is desired. (4) A new machine costing $649,000 will be acquired in 2020, and equipment costing $848,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285,000, and in 2021 $390,000 of depreciation will be taken (5) Accruals are expected to rise to $502,000 by the end of 2021. (6) No sale or retirement of long-term debt is expected. (7) No sale or repurchase of common stock is expected (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.8 million in 2020 and $11.3 million in 2021. A Data Table (10) The December 31, 2019, balance sheet is here a. Prepare a pro forma balance sheet dated December 31, 2021. b. Discuss the financing changes suggested by the statement prepared in part (a). (Click on the loon here @ In order to copy the contents of the data table below into a spreadsheet.) December 31, 2021 Leonard Industries Balance Sheet December 31, 2019 Assets Assets Liabilities and Stockholders' Equity Current assets Cash $403,000 Accounts payable $1,400,000 Cash $ Marketable securities 198,000 Accruals 400,000 Accounts receivable 1,201,000 Other current liabilities 80,400 Marketable securities $ Inventories 1,795,000 Total current liabilities $1,680,400 Accounts receivable $ Total current assets $3,597,000 Long-term debt 1.999.600 Inventories Net fixed assets 4,001,000 Common stock 3.718,000 Total liabilities and Total current assets $ Total assets $7,598,000 stockholders' equity $7,598,000 Nel fixed assets Total assets $ Print Done Enter any number in the edit fields and then click Check
