Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2016. The firm expects 2016 sales to total $3,000,000.

The following information has been gathered.

(1) A minimum cash balance of $49,600 is desired.

(2) Marketable securities are expected to remain unchanged.

(3) Accounts receivable represent 9.9% of sales.

(4) Inventories represent 11.6% of sales.

(5) A new machine costing $90,100 will be acquired during 2016. Total depreciation for the year will be $31,900.

(6) Accounts payable represent 14.1% 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 4.2%, and it expects to pay out $69,500 in cash dividends during 2016.

(9) The December 31, 2015, balance sheet follows

a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2016, for Leonard Industries.

b. How much, if any, additional financing will Leonard Industries require in 2016? Discuss.

c. Could Leonard Industries adjust its planned 2016 dividend to avoid the situation described in part

Explain how. (Round to the nearest dollar.)

Pro forma balance sheet Basie Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2016. The firm expects 2016 sales to total 3,000000. The following information has been gathered (1) A minimum cash balance of$49,600 is desred (2) Marketable securities are expected to remain unchanged (3) Accounts recevable represent 9.9% of sales. (4) Imentores represent 1 1 6% of sales (5) A new machine costing $90,100 will be acquieed during 2016 Total depreciation for the year will be $31,900 (6) Accounts payable represent 14.1% of sales (7) Accruals, other current Eabilnies, long-tenm debt and common stock are expected to remain unchanged (8) The firm's net profit margin is 4.2%, and it expects to pay out 869,500 in cash dividends durng 2016. (9) The December 31,2015 balance sheet follows a. I.se the udmental annraach to necar a farma halance sheet dated December 31. 2 16 for 1 eonard hastriea a. Use the judgmenal approach to prepare a pro forma balance sheet dated December 31, 2016, for Leonard Industries. Complete the sssets part of the pro forma balance sheet for Leonard Industries for December 31,2016 bew: Round to the nearest dollar.) Pro Forma Balance Sheet December 31, 2016 Current assets Cash Marketable securties Accounts receivable ventories Total current assets Net fued assets Total assets (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Leonard Industries Balance Sheet December 31, 2015 Assets Cash Marketable securities Accounts receivable Inventories Liabilities and Stockholders' Equity $394,900 59,500 29,700 $484,100 349,900 199,600 220,500 $1,254,100 $44,900 Accounts payable 15,300 Accruals 254,800 Other current liabilities 339,500 Total current liabilities Total current assets $654,500 Long-term debt 599,600 Common stock Net fixed assets Retained earnings Total assets $1,254,100t liabilities and stockholders' equity Print Done