Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! I will rate! thank you in advance! Pro forma balanee sheet Peabody 8 Peabody has 2019 sales of $10.2 milion, it wishes to

please help! I will rate! thank you in advance!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pro forma balanee sheet Peabody 8 Peabody has 2019 sales of $10.2 milion, it wishes to anatyre expected perlarmance and francing needs for 20212 years ahead Ginta the folowing information, respond to parts a. and b. (1) The percents of sales for items that vary drectly with sales are as follows: Accounts receivable, 12.4\%, Inventory: 17.7\%: Accounts payable, 14.1\%: Net prott margin, 2.9\% (2) Markotabie securities and other current kabities ace expected to remain unchanged. (3) A miniteum cash talance of $400,000 is desired. (4) A new machine costing 5646,000 wil be acquired in 2020, and equipment costing 5852,000 wal be purchased in 2021. Total depreciason in 2020 is forecest as 5288,000 and in 20215380,000 of depeeciation wit be taken. (5) Accrusla eve expected to rise to 5605,000 by the end of 2021 . (6) No sale of retirement of long-tarm bebt is expected. (7) No sale of repurchase of common stock is expected (1) The dimdend peyout of to\% of net profits is eupected ta continue. (i) Sales are expecled to be 111.4 mition in 2080 and 511.4 mition in 2021. (10) The December 31, 2019, balance sheet is here Ifit. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is expected to coptinue. (9) Sales are expected to be $11.4 million in 2020 and $11.4 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). Data table (Click on the icon here o. In order to copy the contents of the data table below into a spreadsheet) a. Prepare a pro forma balance sheet dated December 31, 2021. Complete the assets part of the pro forma balance sheet for Peabody \& Peabody for December 31,2021 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Peabody \& Peabody December 31, 2021 Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions