Pro forma balance sheet Peabody \& Peabody has 2022 sales of $10.1 million. It wishes to analyze expected performance and financing needs for 2024 - 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; 11.8%, Inventory; 18.5%; Accounts payable, 13.9%; Net profit margin, 3.3%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $482,000. (4) A new machine costing $653,000 will be acquired in 2023, and equipment costing $855,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $288,000, and in 2024$389,000 of depreciation will be taken. (5) Accruals will rise to $504,000 by the end of 2024. (6) There will be no sale or retirement of long-term debt. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits will continue. Pro forma balance sheet Peabody \& Peabody has 2022 sales of $10.1 million. It wishes to analyze expected performance and financing needs for 2024 - 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; 11.8%, Inventory; 18.5%; Accounts payable, 13.9%; Net profit margin, 3.3%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $482,000. (4) A new machine costing $653,000 will be acquired in 2023, and equipment costing $855,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $288,000, and in 2024$389,000 of depreciation will be taken. (5) Accruals will rise to $504,000 by the end of 2024. (6) There will be no sale or retirement of long-term debt. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits will continue