nce sheet Peabody&Peabody has 2019 sales of $10.8 million. It wishes to analyze expected ernnce and financing needs for 2021-2 years aheed. Given the f following information, respond to parts a. r and b. entry: percents of sales for items that vary directly with sales are as folows Accounts receivable: 122% 1 (1) The 18.5%. Accounts payable, 14.5% Net profit margin, 2.8% 2) Marketable secunities and other current liabilities are expected to remain unchanged (3) A minimum cash balance of $484,000 is desired. (4) A new machine costing $655,000 ill be acquired in 2020, and equipment costing $ Total depreciation in 2020 is forecast as $295,000, and in 2021 $391,000 of depreciation will be taken. (5) Accruals are expected to rise to $496,000 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 expecterd (8) The dividend payout of 50% ofnet profits is expected to continue. (9) Sales are expected to be $11.9 million in 2020 and $11.9 milion in 2021. (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). $852,000 will be purchased in 2021 a. Prepare a pro forma balance sheet dated December 31, 2021. Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, the nearest dollar.) 2021 below: (Round to Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 comman pad 2820 L 2421 Assets Current assets Cash Marketable securities Accounts receivable Total current assets Net fixed assets Total assets Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody&Peabody for December 31, 2021 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Liabilities and stockholders' equity Current liabilities Accounts payable Other current liabilities Total current liabilities Long-term debt Total liabilities Common stock and Retained Earmings External funds required Total liabilities and stockholders' equity b. Discuss the financing changes suggested by the statement prepared in part (a). (Select all the answers that apply) A Peabody & Peabody's retained earnings are enough to cover all of the company's desired B. Peabody &Peabody must arrange for additional financing of at least $794,600 over the next C Peabody & Peabody must arrange for additional financing of at leastS799600 over the next D. If financing cannot be obtained, one or more of the constraints must be changed. 4: Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a level of certain accounts. two years based on the given constraints and projections two years based on the given constraints and projections Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Assets Cash Marketable securities Accounts receivable Inventories $1,400,000 403,000 $403,000 Accounts payable 200,000 Accruals 1,205,000 Other current liabilities ,804,000 79,900 Total current liabilities $1,882,900 Total current assets $3.,612,000 Long-term debt 2,006,100 3,718,000 Net fixed assets 3,995,000 Common stock Total liabilities and $7,607,000 Total assets $7,607,000 stockholders' equity
