Pro forma balance sheet Peabody Peabody has 2015 sales of $10 9 million It wishes to analyze expected performance and financing needs for 20172 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 3 , Inventory 17 7 Accounts payable, 13 6 Net profit margin, 2 8 (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 $648,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017 Total depreciation in 2016 is forecast as $287,000, and in 2017 $390,000 of depreciation will be taken (5) Accruals are expected to rise to $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 of net profits is expected to continue (9) Sales are expected to be $12 1 million in 2016 and $11 8 million in 2017 (10) The December 31, 2015, balance sheet is here 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 Assets Liabilities and Stockholders' Equity Cash $396,000 Accounts payable Marketable securities 198,000 Accruals Accounts receivable 1,200,000 Other current liabilities Inventories 1,803,000 Total current liabilities Total current assets $3,597,000 Long term debt Net fixed assets 3,997,000 Common stock Total liabilities and Total assets $7,594,000 stockholders' equity $1,402,000 403,000 79,800 $1,884,800 1,984,200 3,725,000 $7,594,000 Print Done a Prepare a pro forma balance sheet dated December 31, 2017 Complete the assets part of the pro forma balance sheet for Peabody Peabody for December 31, 2017 below (Round to the nearest dollar ) Pro Forma Balance Sheet Peabody Peabody December 31, 2017 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories FA Total current assets FA Net fixed assets $ Total assets Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody Peabody for December 31, 2017 below (Round to the nearest dollar ) Current liabilities Accounts payable Accruals $ Other current liabilities Total current liabilities $ Long term debt A A Total liabilities Common stock and Retained Earnings $ External funds required $ Total liabilities and stockholders' equity $ b Discuss the financing changes suggested by the statement prepared in part (a) (Select all the answers that apply ) A Peabody Peabody must arrange for additional financing of at least $810,600 over the next two years based on the given constraints and projections B If financing cannot be obtained, one or more of the constraints must be changed C Peabody Peabody's retained earnings are enough to cover all of the company's desired level of certain accounts D Peabody Peabody must arrange for additional financing of at least $805,600 over the next two years based on the given constraints and projections Pro forma balance sheet Peabody Peabody has 2015 sales of $10 9 million It wishes to analyze expected performance and financing needs for 20172 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 3 , Inventory 17 7 Accounts payable, 13 6 Net profit margin, 2 8 (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 $648,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017 Total depreciation in 2016 is forecast as $287,000, and in 2017 $390,000 of depreciation will be taken (5) Accruals are expected to rise to $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 of net profits is expected to continue (9) Sales are expected to be $12 1 million in 2016 and $11 8 million in 2017 (10) The December 31, 2015, balance sheet is here 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 Assets Liabilities and Stockholders' Equity Cash $396,000 Accounts payable Marketable securities 198,000 Accruals Accounts receivable 1,200,000 Other current liabilities Inventories 1,803,000 Total current liabilities Total current assets $3,597,000 Long term debt Net fixed assets 3,997,000 Common stock Total liabilities and Total assets $7,594,000 stockholders' equity $1,402,000 403,000 79,800 $1,884,800 1,984,200 3,725,000 $7,594,000 Print Done a Prepare a pro forma balance sheet dated December 31, 2017 Complete the assets part of the pro forma balance sheet for Peabody Peabody for December 31, 2017 below (Round to the nearest dollar ) Pro Forma Balance Sheet Peabody Peabody December 31, 2017 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories FA Total current assets FA Net fixed assets $ Total assets Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody Peabody for December 31, 2017 below (Round to the nearest dollar ) Current liabilities Accounts payable Accruals $ Other current liabilities Total current liabilities $ Long term debt A A Total liabilities Common stock and Retained Earnings $ External funds required $ Total liabilities and stockholders' equity $ b Discuss the financing changes suggested by the statement prepared in part (a) (Select all the answers that apply ) A Peabody Peabody must arrange for additional financing of at least $810,600 over the next two years based on the given constraints and projections B If financing cannot be obtained, one or more of the constraints must be changed C Peabody Peabody's retained earnings are enough to cover all of the company's desired level of certain accounts D Peabody Peabody must arrange for additional financing of at least $805,600 over the next two years based on the given constraints and projections

Question

Pro forma balance sheet Peabody   Peabody has 2015 sales of $10 9 million  It wishes to analyze expected performance and financing needs for 20172 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 3 , Inventory  17 7   Accounts payable, 13 6   Net profit margin, 2 8   (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 $648,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017  Total depreciation in 2016 is forecast as $287,000, and in 2017 $390,000 of depreciation will be taken  (5) Accruals are expected to rise to $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  of net profits is expected to continue  (9) Sales are expected to be $12 1 million in 2016 and $11 8 million in 2017  (10) The December 31, 2015, balance sheet is here   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 Assets Liabilities and Stockholders' Equity Cash $396,000 Accounts payable Marketable securities 198,000 Accruals Accounts receivable 1,200,000 Other current liabilities Inventories 1,803,000 Total current liabilities Total current assets $3,597,000 Long term debt Net fixed assets 3,997,000 Common stock Total liabilities and Total assets $7,594,000 stockholders' equity $1,402,000 403,000 79,800 $1,884,800 1,984,200 3,725,000 $7,594,000 Print Done a  Prepare a pro forma balance sheet dated December 31, 2017  Complete the assets part of the pro forma balance sheet for Peabody   Peabody for December 31, 2017 below  (Round to the nearest dollar ) Pro Forma Balance Sheet Peabody   Peabody December 31, 2017 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories FA Total current assets FA Net fixed assets $ Total assets Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody   Peabody for December 31, 2017 below  (Round to the nearest dollar ) Current liabilities Accounts payable Accruals $ Other current liabilities Total current liabilities $ Long term debt A A Total liabilities Common stock and Retained Earnings $ External funds required $ Total liabilities and stockholders' equity $ b  Discuss the financing changes suggested by the statement prepared in part (a)  (Select all the answers that apply ) A  Peabody   Peabody must arrange for additional financing of at least $810,600 over the next two years based on the given constraints and projections  B  If financing cannot be obtained, one or more of the constraints must be changed  C  Peabody   Peabody's retained earnings are enough to cover all of the company's desired level of certain accounts  D  Peabody   Peabody must arrange for additional financing of at least $805,600 over the next two years based on the given constraints and projections  Pro forma balance sheet Peabody   Peabody has 2015 sales of $10 9 million  It wishes to analyze expected performance and financing needs for 20172 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 3 , Inventory  17 7   Accounts payable, 13 6   Net profit margin, 2 8   (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 $648,000 will be acquired in 2016, and equipment costing $846,000 will be purchased in 2017  Total depreciation in 2016 is forecast as $287,000, and in 2017 $390,000 of depreciation will be taken  (5) Accruals are expected to rise to $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  of net profits is expected to continue  (9) Sales are expected to be $12 1 million in 2016 and $11 8 million in 2017  (10) The December 31, 2015, balance sheet is here   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 Assets Liabilities and Stockholders' Equity Cash $396,000 Accounts payable Marketable securities 198,000 Accruals Accounts receivable 1,200,000 Other current liabilities Inventories 1,803,000 Total current liabilities Total current assets $3,597,000 Long term debt Net fixed assets 3,997,000 Common stock Total liabilities and Total assets $7,594,000 stockholders' equity $1,402,000 403,000 79,800 $1,884,800 1,984,200 3,725,000 $7,594,000 Print Done a  Prepare a pro forma balance sheet dated December 31, 2017  Complete the assets part of the pro forma balance sheet for Peabody   Peabody for December 31, 2017 below  (Round to the nearest dollar ) Pro Forma Balance Sheet Peabody   Peabody December 31, 2017 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories FA Total current assets FA Net fixed assets $ Total assets Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody   Peabody for December 31, 2017 below  (Round to the nearest dollar ) Current liabilities Accounts payable Accruals $ Other current liabilities Total current liabilities $ Long term debt A A Total liabilities Common stock and Retained Earnings $ External funds required $ Total liabilities and stockholders' equity $ b  Discuss the financing changes suggested by the statement prepared in part (a)  (Select all the answers that apply ) A  Peabody   Peabody must arrange for additional financing of at least $810,600 over the next two years based on the given constraints and projections  B  If financing cannot be obtained, one or more of the constraints must be changed  C  Peabody   Peabody's retained earnings are enough to cover all of the company's desired level of certain accounts  D  Peabody   Peabody must arrange for additional financing of at least $805,600 over the next two years based on the given constraints and projections

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Pro forma balance sheet Peabody & Peabody has 2015 sales of $10.9 million. It wishes to analyze expected performance and financing needs for 20172 years

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