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Pro forma balance sheet - Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 3 1 , 2 0 2 0
Pro forma balance sheetBasic Leonard Industries wishes to prepare a pro forma balance sheet for December The firm expects sales to total $ The following information has been gathered.
A minimum cash balance of $ is desired.
Marketable securities are expected to remain unchanged.
Accounts receivable represent of sales.
Inventories represent of sales.
A new machine costing $ will be acquired during Total depreciation for the year will be $
Accounts payable represent of sales.
Accruals, other current liabilities, longterm debt, and common stock are expected to remain unchanged.
The firm's net profit margin is and it expects to pay out $ in cash dividends during
The December balance sheet follows
a Use the judgmental approach to prepare a pro forma balance sheet dated December for Leonard Industries.
b How much, if any, additional financing will Leonard Industries require in Discuss.
c Could Leonard Industries adjust its planned dividend to avoid the situation described in part b Explain how.
Leonard Industries Balance Sheet December
tableAssetsLiabilities and Stockholders' Equity,Cash$Accounts payable,$
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