Peabody & Peabody has 2015 sales of $10.8 million. It wishes to analyze expected performance and financing needs for 2017 - 2 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;12.5%, Inventory; 17.6%; Accounts payable, 13.7%; Net profitmargin, 3.1%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $482,000 is desired. (4) A new machine costing $650,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $292,000 and in 2017 $391,000 of depreciation will be taken. (5) Accruals are expected to rise to $498,000 by the end of 2017. (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 $11.9 million in 2016 and $12.0 million in 2017.

Pro foma balance sheet Peabody &Peabody has 2015 sales of $10.8 milion. It wishes to analyze expected performance and financing needs for 2017-2 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 recevable 12.5% Inventory: 17.6%; Accounts payable 13.7% Net profit margin, 3.1%. (2) Marketable securities and other current liabilties are expected to remain unchanged (3) A minimum cash balance of $482000 is desired (4) A new machine costing $650,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017. Total depreciation in 2016 is forecast 8s $292.000, and in 2017 $391000 of depreciation will be taken (5) Accruals are expected to rise to $498,000 by the end of 2017 (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 $11.9 million in 2016 and $12 0 million in 2017 a. Prepare a pro forma balance sheet dated December 31. 2017 Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31.2017 bekw (Round to the nearest dollar Pro foma balance sheet Peabody &Peabody has 2015 sales of $10.8 milion. It wishes to analyze expected performance and financing needs for 2017-2 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 recevable 12.5% Inventory: 17.6%; Accounts payable 13.7% Net profit margin, 3.1%. (2) Marketable securities and other current liabilties are expected to remain unchanged (3) A minimum cash balance of $482000 is desired (4) A new machine costing $650,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017. Total depreciation in 2016 is forecast 8s $292.000, and in 2017 $391000 of depreciation will be taken (5) Accruals are expected to rise to $498,000 by the end of 2017 (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 $11.9 million in 2016 and $12 0 million in 2017 a. Prepare a pro forma balance sheet dated December 31. 2017 Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31.2017 bekw (Round to the nearest dollar