Pro forma balance sheet Peabody & Peabody has

20192019

sales of

$ 10.9$10.9

million. It wishes to analyze expected performance and financing needs for

20212021long 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;

12.3 %12.3%,

Inventory;

18.5 %18.5%;

Accounts payable,

13.8 %13.8%;

Net profit margin,

2.8 %2.8%.

(2) Marketable securities and other current liabilities are expected to remain unchanged.

(3) A minimum cash balance of

$ 477 comma 000$477,000

is desired.(4) A new machine costing

$ 653 comma 000$653,000

will be acquired in

20202020,

and equipment costing

$ 847 comma 000$847,000

will be purchased in

20212021.

Total depreciation in

20202020

is forecast as

$ 285 comma 000$285,000,

and in

20212021

$ 385 comma 000$385,000

of depreciation will be taken.(5) Accruals are expected to rise to

$ 502 comma 000$502,000

by the end of

20212021.

(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 %50%

of net profits is expected to continue.(9) Sales are expected to be

$ 12.0$12.0

million in

20202020

and

$ 12.0$12.0

million in

20212021.

(10) The December 31,

20192019,

balance sheet is here

LOADING...

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

20212021.

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

(a).

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

20212021.

Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31,

20212021

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	$

Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Leonard Industries Balance Sheet December 31, 2019 $396,000 Accounts payable Assets Cash Marketable securities Accounts receivable Inventories Liabilities and Stockholders' Equity $1,403,000 404,000 79,900 $1,886,900 1,988,100 3,715,000 204,000 Accruals 1,198,000 Other current liabilities 1,796,000 Total current liabilities Total current assets $3,594,000 Long-term debt Net fixed assets 3,996,000 Common stock Total liabilities and Total assets $7,590,000 stockholders' equity $7,590,000 Print Done Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Leonard Industries Balance Sheet December 31, 2019 $396,000 Accounts payable Assets Cash Marketable securities Accounts receivable Inventories Liabilities and Stockholders' Equity $1,403,000 404,000 79,900 $1,886,900 1,988,100 3,715,000 204,000 Accruals 1,198,000 Other current liabilities 1,796,000 Total current liabilities Total current assets $3,594,000 Long-term debt Net fixed assets 3,996,000 Common stock Total liabilities and Total assets $7,590,000 stockholders' equity $7,590,000 Print Done