Pro forma balance sheet

Peabody & Peabody has 2019 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 2021 long dash2 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 $648,000

will be acquired in 2020, and equipment costing $851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285,000, and in 2021 $386,000 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.

(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

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.a. Prepare a pro forma balance sheet dated December 31,2021.

b. Discuss the financing changes suggested by the statement prepared in part(a).

a. Prepare a pro forma balance sheet dated December 31,2021.

0 P4-19 (similar to) Question Help 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 S648,000 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 (5) Accruals are Data Table X (6) No sale or (7) No sale or (8) The dividend (9) Sales are es (10) The Decen (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. Prepare a pre Leonard Industries Balance Sheet December 31, 2019 b. Discuss the Assets Liabilities and Stockholders' Equity Cash $398.000 $1,396.000 a. Prepare a pro Accounts payable Marketable securities 197,000 Accruals 395,000 Complete the a Accounts recalvable 1.198.000 Other current liabilities 80,400 Inventories 1,801.000 Total current liabilities $1,871,400 Total current assets $3,594,000 Long-term debt 1.996,600 Net fixed assets 3.998 000 Common stock 3.724,000 Total liabilities and Total assets 57,592,000 stockholders' equity $7,592,000 Assets Current as Print Done Cash Enter any number in the edit fields and then click Check Answer 2 pants remaining ho Clear All Check Answer margin 2.9% (2) Mariceable 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 $648,000 will be acquired in 2020, and equipment costing 5851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5386,000 of depreciation will be taken (5) Accruals are expected to rise to $504,000 by the end of 2021 16) 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 19) 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) Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Assets Current assets Cash 5 Marketable securities Accounts receivable $ Inventories $ Total current assets 5 Net fixed assets Enter any number in the edit lids and then click Check Answer 2 parts remaining Clear All Check Answer P4-19 (similar to) Question Help 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 percent 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 liabides are expected to remain unchanged. (3) A minimum cash balance of $477,000 is desired (4) A new machine costing $648,000 will be acquired in 2020, and equipment casting $851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285,000, and in 2021 8386,000 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 (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. Peabody & Peabody December 31, 2021 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories $ Total current assets Net fixed assets $ $ Total assets 5 Enter any number in the edit fields and then click Check Answer. 2 parts Clear All remaining Check Answer 0 P4-19 (similar to) Question Help 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 S648,000 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 (5) Accruals are Data Table X (6) No sale or (7) No sale or (8) The dividend (9) Sales are es (10) The Decen (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. Prepare a pre Leonard Industries Balance Sheet December 31, 2019 b. Discuss the Assets Liabilities and Stockholders' Equity Cash $398.000 $1,396.000 a. Prepare a pro Accounts payable Marketable securities 197,000 Accruals 395,000 Complete the a Accounts recalvable 1.198.000 Other current liabilities 80,400 Inventories 1,801.000 Total current liabilities $1,871,400 Total current assets $3,594,000 Long-term debt 1.996,600 Net fixed assets 3.998 000 Common stock 3.724,000 Total liabilities and Total assets 57,592,000 stockholders' equity $7,592,000 Assets Current as Print Done Cash Enter any number in the edit fields and then click Check Answer 2 pants remaining ho Clear All Check Answer margin 2.9% (2) Mariceable 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 $648,000 will be acquired in 2020, and equipment costing 5851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as 5285.000, and in 2021 5386,000 of depreciation will be taken (5) Accruals are expected to rise to $504,000 by the end of 2021 16) 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 19) 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) Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Assets Current assets Cash 5 Marketable securities Accounts receivable $ Inventories $ Total current assets 5 Net fixed assets Enter any number in the edit lids and then click Check Answer 2 parts remaining Clear All Check Answer P4-19 (similar to) Question Help 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 percent 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 liabides are expected to remain unchanged. (3) A minimum cash balance of $477,000 is desired (4) A new machine costing $648,000 will be acquired in 2020, and equipment casting $851,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $285,000, and in 2021 8386,000 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 (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. Peabody & Peabody December 31, 2021 Assets Current assets Cash Marketable securities $ Accounts receivable $ Inventories $ Total current assets Net fixed assets $ $ Total assets 5 Enter any number in the edit fields and then click Check Answer. 2 parts Clear All remaining Check