Pro forma balance sheet ??Peabody? & Peabody has 2015 sales of $ 10.5 $10.5 million. It wishes to analyze expected performance and financing needs for 2017 long dash 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; 12.4 % 12.4%?, ?Inventory; 17.8 % 17.8%?; Accounts? payable, 14.4 % 14.4%?; Net profit? margin, 3.4 % 3.4%.

?(2) Marketable securities and other current liabilities are expected to remain unchanged.

?(3) A minimum cash balance of $ 477 comma 000 $477,000 is desired.

?(4) A new machine costing $ 650 comma 000 $650,000 will be acquired in? 2016, and equipment costing $ 845 comma 000 $845,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $ 289 comma 000 $289,000?, and in 2017 $ 394 comma 000 $394,000 of depreciation will be taken. ?

(5) Accruals are expected to rise to $ 505 comma 000 $505,000 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 $ 11.3 $11.3 million in 2016 and $ 11.7 $11.7 million in 2017. ?

(10) The December? 31, 2015, balance sheet is here