Pro forma balance sheet ??Peabody? & Peabody has 2015 sales of $ 10.1$10.1 million. It wishes to analyze expected performance and financing needs for 2017long dash2 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 %11.6%?, ?Inventory; 17.7 %17.7%?; Accounts? payable, 13.7 %13.7%?; Net profit? margin, 2.5 %2.5%. ?(2) Marketable securities and other current liabilities are expected to remain unchanged. ?(3) A minimum cash balance of $ 480 comma 000$480,000 is desired. ?(4) A new machine costing $ 651 comma 000$651,000 will be acquired in? 2016, and equipment costing $ 848 comma 000$848,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $ 287 comma 000$287,000?, and in 2017 $ 395 comma 000$395,000 of depreciation will be taken. ?(5) Accruals are expected to rise to $ 500 comma 000$500,000 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 %50% of net profits is expected to continue. ?(9) Sales are expected to be $ 11.0$11.0 million in 2016 and $ 11.2$11.2 million in 2017. ?(10) The December? 31, 2015, balance sheet is here LOADING... . a. Prepare a pro forma balance sheet dated December? 31, 2017. b. Discuss the financing changes suggested by the statement prepared in part ?(a?). Assets Liabilities and Stockholders Equity Cash $404,000 Accounts payable $1,401,000 Marketable securities 201,000 Accruals 400,000 Accounts receivable 1,201,000 Other current liabilities 80,500 Inventories 1,801,000 Total current liabilities $1,881,500 Total current assets $3,607,000 Long-term debt 2,008,500 Net fixed assets 4,003,000 Common stock 3,720,000 Total assets $7,610,000 Total liabilities and stockholders' equity $7,610,000