Pro forma balance sheet Peabody & Peabody has 2015 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 20172 years ahead. Given the following information, respond to parts a. and b. -X (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.3%, Inventory, 18.4%; Accounts payable, 14.4%; Net profit margin, 2.8%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $479,000 is desired. (4) A new machine costing $652,000 will be acquired in 2016, and equipment costing $849,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $291,000, and in 2017 $392,000 of depreciation will be taken. (5) Accruals are expected to rise to $495,000 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. A Data Table (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.3 million in 2016 and $11.4 million in (10) The December 31, 2015, balance sheet is here ! (Click on the icon located on the top-right corner of the data table below in order to copy its contents Pro Forma Balance Sheet into a spreadsheet.) Peabody & Peabody December 31, 2017 Leonard Industries Balance Sheet December 31, 2015 Assets Liabilities and Stockholders' Equity Liabilities and stockholders' equity Cash $398,000 Accounts payable $1,402,000 Marketable securities 199,000 Accruals Current liabilities 399,000 Accounts receivable 1,198,000 Other current liabilities 79,900 Accounts payable 1,641,600 Inventories 1,805,000 Total current liabilities $1,880,900 Accruals Total current assets $3,600,000 Long-term debt 2,001,100 Net fixed assets 4,003,000 Common stock 3,721,000 Other current liabilities Total liabilities and Total assets $7,603,000 stockholders' equity Total current liabilities $7,603,000 Long-term debt Total liabilities Common stock and Retained Earnings $ External funds required Total liabilities and stockholders' equity SL8,998,800 Print Done Enter any number in the edit fields and then click Check Answer. Pro forma balance sheet Peabody & Peabody has 2015 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 20172 years ahead. Given the following information, respond to parts a. and b. -X (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.3%, Inventory, 18.4%; Accounts payable, 14.4%; Net profit margin, 2.8%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $479,000 is desired. (4) A new machine costing $652,000 will be acquired in 2016, and equipment costing $849,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $291,000, and in 2017 $392,000 of depreciation will be taken. (5) Accruals are expected to rise to $495,000 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. A Data Table (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.3 million in 2016 and $11.4 million in (10) The December 31, 2015, balance sheet is here ! (Click on the icon located on the top-right corner of the data table below in order to copy its contents Pro Forma Balance Sheet into a spreadsheet.) Peabody & Peabody December 31, 2017 Leonard Industries Balance Sheet December 31, 2015 Assets Liabilities and Stockholders' Equity Liabilities and stockholders' equity Cash $398,000 Accounts payable $1,402,000 Marketable securities 199,000 Accruals Current liabilities 399,000 Accounts receivable 1,198,000 Other current liabilities 79,900 Accounts payable 1,641,600 Inventories 1,805,000 Total current liabilities $1,880,900 Accruals Total current assets $3,600,000 Long-term debt 2,001,100 Net fixed assets 4,003,000 Common stock 3,721,000 Other current liabilities Total liabilities and Total assets $7,603,000 stockholders' equity Total current liabilities $7,603,000 Long-term debt Total liabilities Common stock and Retained Earnings $ External funds required Total liabilities and stockholders' equity SL8,998,800 Print Done Enter any number in the edit fields and then click Check