P4-19 (similar to) Question Help 8 Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.4 million. It wishes to analyze expected performance and financing needs for 20212 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; 11.8%, Inventory; 18.5%; Accounts payable, 13.6%; Net profit margin, 2.9%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $483,000 is desired. (4) A new machine costing $650,000 will be acquired in 2020, and equipment costing $845,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $294,000, and in 2021 $388,000 of depreciation will be taken. (5) Accruals are expected to rise to $497,000 by the end of 2021. IR No enlaourirent.of Janstorm dohtie ovnertad Inventories Total current assets Net fixed assets 9 10 11 12 $ $ 13 14 15 16 17 18 $ Total assets $ Enter any number in the edit fields and then click Check Answer. Edit 2 parts remaining Clear All Check Answer Type here to search BB P4-19 (similar to) Question Help (3) A minimum casn balance of $483,000 is desired. (4) A new machine costing $650,000 will be acquired in 2020, and equipment costing $845,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $294,000, and in 2021 $388,000 of depreciation will be taken. (5) Accruals are expected to rise to $497,000 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 $11.5 million in 2020 and $11.5 million 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). POUR TUUUIVUIUIU Inventories Total current assets Net fixed assets $ $ $ Total assets A Enter any number in the edit fields and then click Check Answer. Ec 2 parts Clear All Check Answer remaining TH pis i Data Table TUICN UIT HOTCOITIOCOLCU UITG toprigric COITIO UT CU contents into a spreadsheet.) Leonard Industries Balance Sheet Assets Liabilities Cash $397,000 Accounts Marketable securities 203,000 Accruals Accounts receivable 1,195,000 Other curre Inventories 1,799,000 Total cu Total current assets $3,594,000 Long-term Net fixed assets 4,00 1,000 Common sto Total liabilitie Total assets $7,595,000 stockhol Print Done Emer any number te euru nerus ana the CICK CHECK ANSWE 2 parts remaining Clear All Type here to search 2 2 3 3 ITICI UTC Jawa ODIO VCIOW TIT TUOI Copy To 5 4 5 6 7 13 1 -54 alance Sheet December 31, 2019 Liabilities and Stockholders' Equity Accounts payable Accruals Other current liabilities Total current liabilities Long-term debt Common stock Total liabilities and 0 stockholders' equity $1,396,000 404,000 80,200 $1,880,200 1,991,800 3,723,000 9 10 11 12 13 14 15 16 17 $7,595,000 Print Done Samtrent CITCR UTCR Ariswer. ? Edit Clear All Check Answer h 3 D Bb hp ucus expecieu. . (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is expected to continue. 191 Sales are expected to be $11.5 million in 2020 and $11.5 million in 2021 Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Assets Enter any number in the edit fields and then click Check Answer. 2 parts remaining Type here to search 3 VAPOLLUu. (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 $11.5 million in 2020 and $115 million in 2021 Assets Current assets Cash $ Marketable securities Accounts receivable $ $ Enter any number in the edit fields and then click Check Answer. 2 parts remaining Type here to search (0) 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) Salesace Axsasteel vahe $115 million in 2020 and $115 million in 2021 Inventories $ Total current assets $ Net fixed assets $ Total assets $ Enter any number in the edit fields and then click Check Answer. 2 parts remaining o Type here to search 3
