Pro Forma balance sheet- Peabody & Peabody has 2019 sales of 10.4 milion. 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 percent of sales for items that vary directly with sales are as follows: Accounts receivable 12.2%, inventory 18.2%, accounts payable, 13.6% , Net Profit margin 3.3%

2. Marketable securties and other current liabilites are expected to remain unchanged.

3. a minimum cash balance of $483,000 is desired.

4. A new machins costing $648,000 will be acquired in 2020 and equipement costing $853,00 wil be purchased in 2021. Total deprication in 2020 is forecast as $286,00 and in 2021 $392,000 of depreciation will be taken.

5. Accurals are expected to rise $502,000 by the end of 2021.

6. No sales 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 $11.5 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).

Leonard Industries Balance Sheet December 31, 20192019
Assets			Liabilities and Stockholders' Equity
Cash	$397,000		Accounts payable	$1,405,000
Marketable securities	201,000		Accruals	$398,000
Accounts receivable	1,201,000		Other current liabilities	$80,500
Inventories	1,805,000		Total current liabilities	$1,883,500
Total current assets	$3,604,000		Long-term debt	1,999,500
Net fixed assets	$3,998,000		Common stock	3,719,000
Pro Forma Balance Sheet Peabody & PeaBody December 31, 2021 Assets Current assets Cash $______ Marketable securties $_____ Accounts Receivable $______ Inventories $_____ total Current assets $______ Net Fixed assets $____ Total assets $____			Total liabilities & stockholder equity	$7,602,000