Obligatoire Question (50 Marks) Using the percent-of-sales method and the following financial data, prepare the pro forma balance sheet in order to answer the following multiple choice questions. Cash Accounts receivable Inventories Assets $25,000 120,000 300,000 Total current assets $445,000 Net fixed assets $500,000 Total assets $945,000 Liabilities and stockholders' equity accounts payable Notes payable $80,000 350,000 Accruals Total current liabilities Long-term debts Total liabilities Stockholders' equity Common stock Retained earning Total Stockholders' equity Total liabilities and stockholders' equity 50.000 $480,000 150,000 $630,000 180,000 135,000 $315,000 $945,000 A financial manager at company XYZ has gathered the financial data essential to prepare a pro forma balance sheet for cash and profit planning purposes for the coming year ended December 31, 2021. 1- Using the percent-of-sales method and the following financial data, prepare the pro forma balance sheet in order to answer the following multiple choice questions. (a) The firm estimates sales of $1,000,000. (b) The firm maintains a cash balance of $35,000. Accounts receivable represents 25 percent of (c) sales. (d) (e) Inventory represents 15 percent of sales. A new piece of mining equipment costing $150,000 will be purchased in 2010. Total depreciation for 2010 will be $55,000. (f) Accounts payable represents 12 percent of sales. (g) There will be no change in notes payable, accruals, and common stock. (h) The firm plans to retire a long term note of $100,000. (i) Dividends of $45,000 will be paid in 2010 (j)The firm predicts a 5 percent net profit margin. 2- Is the firm need to take a loan or invest in marketable securities? Explain your answer Answer only 2 questions