Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 2021-2 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; 11.9%, Inventory; 17.9%; Accounts payable, 13.7%; Net profit margin, 3.2%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $484,000 is desired. (4) A new machine costing $645,000 will be acquired in 2020, and equipment costing $848,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $294,000, and in 2021 $391,000 of depreciation will be taken. (5) Accruals are expected to rise to $495,000 by the end of 2021. (6) No sale or retirement of long-term debt is expected. (7) No sale or repurchase of common stock is expected. X (8) The dividend payout of 50% of net profits is expected to continue. Data table (9) Sales are expected to be $11.6 million in 2020 and $11.3 million in 2021. (10) The December 31, 2019, balance sheet is here a. Prepare a pro forma balance sheet dated December 31, 2021 b. Discuss the financing changes suggested by the statement prepared in part (a). (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Leonard Industries Balance Sheet December 31, 2019 Assets Cash Liabilities and Stockholders' Equity Accounts payable a. Prepare a pro forma balance sheet dated December 31, 2021. Accruals Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31 Marketable securities Accounts receivable Inventories Other current liabilities $403,000 200,000 1,203,000 1,800,000 $3,606,000 3,997,000 Total current liabilities Pro Forma Balance Sheet Long-term debt Total current assets Net fixed assets Total assets Common stock Peabody & Peabody Total liabilities and stockholders' equity December 31, 2021 $7,603,000 Assets Current assets Cash Print Done Marketable securities $ $ $1,398,000 404,000 79,800 $1,881,800 2,003,200 3,718,000 $7,603,000