Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 20212 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, 11.7%, Inventory; 17.5% Accounts payable, 13.7%, Net profit margin, 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired 4) A new machine costing 5548,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285.000, and in 2021 5386,000 of depreciation will be taken. (5) Accruals are expected to rise to $504 000 by the end of 2021 (6) No sale or retirement of long-term debt is expected. 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 511 4 million in 2020 and $11.7 million in 2021 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 Mobilier Enter any number in the edit fields and then click Check Answer 2 parts remaining Clear All Check Answer margin 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired (4) A new machine costing 5648,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5385,000 of depreciation will be taken. (5) Accruals are expected to rise to 5504.000 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 $11.7 million in 2021 (10) The December 31, 2019, balance sheet is here B a. Prepare a pro forma balance sheet dated December 31, 2021 b. Discuss the financing changes suggested by the statement prepared in part (a). - X Data Table dollar) Cash (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 Liabilities and Stockholders' Equity $398,000 Accounts payable Marketable securities 197,000 Accruals Accounts receivable 1.198,000 Other current liabilities Inventories 1,801,000 Total current liabilities Total current assets $3.594,000 Long-term debt Net fixed assets 3.998,000 Common stock Total liabilities and Total assets $7592,000 stockholders' equity $1 396 000 395 000 80 400 $1,871,400 1.996 600 3,724.000 $7.592.000 Check Answer MC pts margin, 29% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired. (4) A new machine costing 5648,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5385,000 of depreciation will be taken. (5) Accruals are expected to rise to 5504.000 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 $11.7 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). Assets Current assets Cash 5 Marketable securities 5 Accounts receivable $ Inventories 5 Total current assets 5 Net fixed assets 5 Total assets $ Enter any number in the edit fields and then click Check Answer 2 parts remaining Clear All Check Answer Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 20212 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, 11.7%, Inventory; 17.5% Accounts payable, 13.7%, Net profit margin, 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired 4) A new machine costing 5548,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285.000, and in 2021 5386,000 of depreciation will be taken. (5) Accruals are expected to rise to $504 000 by the end of 2021 (6) No sale or retirement of long-term debt is expected. 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 511 4 million in 2020 and $11.7 million in 2021 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 Mobilier Enter any number in the edit fields and then click Check Answer 2 parts remaining Clear All Check Answer margin 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired (4) A new machine costing 5648,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5385,000 of depreciation will be taken. (5) Accruals are expected to rise to 5504.000 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 $11.7 million in 2021 (10) The December 31, 2019, balance sheet is here B a. Prepare a pro forma balance sheet dated December 31, 2021 b. Discuss the financing changes suggested by the statement prepared in part (a). - X Data Table dollar) Cash (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 Liabilities and Stockholders' Equity $398,000 Accounts payable Marketable securities 197,000 Accruals Accounts receivable 1.198,000 Other current liabilities Inventories 1,801,000 Total current liabilities Total current assets $3.594,000 Long-term debt Net fixed assets 3.998,000 Common stock Total liabilities and Total assets $7592,000 stockholders' equity $1 396 000 395 000 80 400 $1,871,400 1.996 600 3,724.000 $7.592.000 Check Answer MC pts margin, 29% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $477.000 is desired. (4) A new machine costing 5648,000 will be acquired in 2020, and equipment costing S851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5385,000 of depreciation will be taken. (5) Accruals are expected to rise to 5504.000 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 $11.7 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). Assets Current assets Cash 5 Marketable securities 5 Accounts receivable $ Inventories 5 Total current assets 5 Net fixed assets 5 Total assets $ Enter any number in the edit fields and then click Check Answer 2 parts remaining Clear All Check