Leonard Industries wishes to prepare a pro forma balance sheet for December 31 2020, . The firm expects 2020 sales to total 3000000 . The following information has been gathered.

(1) A minimum cash balance of 49700 is desired.

(2) Marketable securities are expected to remain unchanged.

(3) Accounts receivable represent 9.9% of sales.

(4) Inventories represent 12.2% of sales.

(5) A new machine costing 90100 will be acquired during 2020 . Total depreciation for the year will be 32400 .

(6) Accounts payable represent 14.5% 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 4.3%, and it expects to pay 69600 out in cash dividends during 2020 .

(9) The December 31, , balance sheet follows LOADING....

a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31 2020, , for Leonard Industries.

b. How much, if any, additional financing will Leonard Industries require in 2020? Discuss.

c. Could Leonard Industries adjust its planned 2020 dividend to avoid the situation described in part b? Explain how.

Part 2

Complete the assets part of the pro forma balance sheet for Leonard Industries for December 31,

2020

below:(Round to the nearest dollar.)

Pro Forma Balance Sheet
Leonard Industries
December 31, 2020
Assets
Current assets
Cash	$
Marketable securities
Accounts receivable
Inventories
Total current assets	$
Net fixed assets
Total assets	$

Assets

Liabilities and Stockholders' Equity

Cash

$44,600

Accounts payable

$395,000

Marketable securities

14,600

Accruals

59,600

Accounts receivable

254,600

Other current liabilities

30,500

Inventories

340,300

Total current liabilities

$485,100

Total current assets

$654,100

Long-term debt

349,200

Net fixed assets

599,500

Common stock

199,600

Retained earnings

219,700

Total assets

$1,253,600

Total liabilities and stockholders' equity

$1,253,600