Please help!!

Peabody & Peabody has 2019 sales of $ 10.1 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;11.9 % Inventory; 18.1%; Accounts payable, 13.9%; Net profit margin, 2.8%

(2) Marketable securities and other current liabilities are expected to remain unchanged.

(3) A minimum cash balance of $481,000 is desired.

(4) A new machine costing $651,000 will be acquired in 2020 and equipment costing $846,000

will be purchased in 2021.Total depreciation in 2020 is forecast as $287,000, and in 2021 $389,000

of depreciation will be taken.

(5) Accruals are expected to rise to $496,000

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$ 11.0 million in 2020 and $ 11.2 million in 2021.

(10) The December 31, 2019balance 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).

Leonard Industries Balance Sheet December 31, 20192019

Assets			Liabilities and Stockholders Equity
Cash	$402,000		Accounts payable	$1,402,000
Marketable securities	196000		Accruals	395000
Accounts receivable	1197000		Other current liabilities	79800
Inventories	1804000		Total current liabilities	$1,876,800
Total current assets	$3,599,000		Long-term debt	2010200
Net fixed assets	4004000		Common stock	3716000
Total assets	$7,603,000		Total liabilities and stockholders' equity	$7,603,000