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; 11.6%, Inventory; 17.5%; Accounts payable, 14.3%; Net profit margin, 3.3%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $476,000 is desired. (4) A new machine costing $655,000 will be acquired in 2020, and equipment costing $850,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $286,000, and in 2021 $389,000 of depreciation will be taken. (5) Accruals are expected to rise to $497,000 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. (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.4 million in 2020 and $11.6 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). i Data Table (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 Marketable securities Accounts receivable Inventories Liabilities and Stockholders' Equity $401,000 Accounts payable $1,396,000 205,000 Accruals 404,000 1,200,000 Other current liabilities 80,300 1,799,000 Total current liabilities $1,880,300 Total current assets $3,605,000 Long-term debt 2,010,700 Net fixed assets 4,004,000 Common stock 3,718,000 Total liabilities and Total assets $7,609,000 stockholders' equity $7,609,000 Print Done - X a. Prepare a pro forma balance sheet dated December 31, 2021. Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, 2021 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets 6A $ 69 69 GA SA GA GA Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Peabody & Peabody for December 31, 2021 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Liabilities and stockholders' equity Current liabilities Accounts payable Accruals Other current liabilities Total current liabilities Long-term debt Total liabilities Common stock and Retained Earnings $ External funds required Total liabilities and stockholders' equity $