Pro forma balance sheet Peabody & Peabody has 2015 sales of $10.1 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: 12.5%, Inventory: 17.9%; Accounts payable, 13.6%; Net profit margin 2.5% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $482,000 is desired (4) A new machine costing $649,000 will be acquired in 2016, and equipment costing $853,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $286,000, and in 2017 $394,000 of depreciation will be taken. (5) Accruals are expected to rise to $502,000 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 S11.2 million in 2016 and $10.9 million in 2017 Data Table (10) The December 31, 2015, balance sheet is here EEB a. Prepare a pro forma balance sheet dated December 31, 2017 b. Discuss the financing changes suggested by the statement prepared in part (a). Click 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 Current assets Liabilities and Stockholders' Equity Assets Cash $1,395,000 400,000 79,900 $1,874,900 2,006,100 3,719,000 Cash S402,000 Accounts payable 203,000 Accruals 1,200,000 Other current liabilities 1,800,000 Accounts receivable Accounts receivable Total current liabilities Total current assets S3,605,000 Long-term debt Net fixed assets 3,995,000 Common stock Total current assets Net fixed assets Total assets Total liabilities and Total assets $7,600,000 stockholders' equity $7,600,000 Print Done nter any number in the edit fields and then click Check