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Pro forma balance sheet Peabody & Peabody has 2015 sales of $10.7 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; 11.6%, Inventory: 17.8% Accounts payable, 13.9%; Net profit margin, 3.2% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $485,000 is desired. (4) A new machine costing $646.000 will be acquired in 2016, and equipment costing $847,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $285,000, and in 2017 $390,000 of depreciation will be taken (5) Accruals are expected to rise to $495,000 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 $11.8 million in 2016 and $11.8 milion in 2017 a. Prepare a pro forma balance sheet dated December 31, 2017 Complete the assets part of the proforma balance sheet for Peabody & Peabody for December 31, 2017 below. (Round to the nearest dollar) Pro Forma Balance Sheet Peabody & Peabody December 31, 2017 Assets Current assets Cash Marsha Enter any number in the edit fields and then click Check Answer The percent of sales for tea that vary directly with sales are as follows. Accounts receivable. 11.0%, Inventory 17% Accounts payable 13,8%; Not profit margin, 32% (2) Marvel securities and other current labies are expected to remain unchanged (3) A minimum cash balance of 5485.000 is desved 14) Arow machine conting 1648,000 will be acqured in 2016 and coulent conting 3847,000 will be purchased in 2017. Total depreciation in 2016 a forecast as $28.000 and in 2017 5390.000 af depreciation will be (5) Accu's are expected to i to $495.000 by the end of 2017 (6) No sale or brement of long-term debt is expected No sale of repurchase of common stock is expected (8) The dividend payout of 50% of ret profit in expected to con (5) Sesre expected to be $1.6 milion in 2016 and $115 milion 2017 to) The December 31, 2015, talance sheet is here 2. Prepare a proforma bwance sheet dated December 31, 2017 Discuss the racing change tugited by the woment prepared in part(a) Prepare a profoma bwance sheet and December, 2017 Complete the sets part of the profoma balance est to Pobody & Pestoy for December 31, 2017 below. Round to the nearest dotar) Pro Forma Balance She Peabody & Peabody December 31, 2017 Assets Our Caus Morbi 5 1 Menu Total 5 1 Ek on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Leonard Industries Balance Sheet December 31, 2015 Assets Liabilities and Stockholders' Equity Cash $395,000 Accounts payable $1,403,000 Marketable securities 195,000 Accruals 398,000 Accounts receivable 1203,000 Other current liabilities 79,900 Inventories 1,805,000 Total current liabilities $1,880,900 Total current assets $3,598,000 Long-term debt 1,987,100 Net fixed assets 3,995,000 Common stock 3.725,000 Total liabilities and Total assets $7,593,000 stockholders' equity $7,593,000 Print Done