performance and financing needs for

2024-2

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;

12.4%

, Inventory;

18.3%

; Accounts payable,

13.6%

; Net profit margin,

3.5%

.\ (2) Marketable securities and other current liabilities will remain unchanged.\ (3) Peabody desires a minimum cash balance of

$482,000

.\ (4) A new machine costing

$651,000

will be acquired in 2023 , and equipment costing

$854,000

will be purchased in 2024. Total depreciation in 2023 is forecast as

$285,000

, and in

2024$385,000

of depreciation wiljpe taken.\ (5) Accruals will rise to

$500,000

by the end of 2024 .\ (6) There will be no sale or retirement of long-term debt.\ (7) No sale or repurchase of common stock is expected.\ (8) The dividend payout of

50%

of net profits will continue.

Pro forma balance sheet Peabody \& Peabody has 2022 sales of $10.4 minon. It Wisnes to analyze expected performance and financing needs for 2024 - 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; 12.4%, Inventory; 18.3%; Accounts payable, 13.6%; Net profit margin, 3.5%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $482,000. (4) A new machine costing $651,000 will be acquired in 2023 , and equipment costing $854,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $285,000, and in 2024$385,000 of depreciation wilppe taken. (5) Accruals will rise to $500,000 by the end of 2024 . (6) There will be no sale or retirement of long-term debt. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits will continue