Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.5 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 11.5%, Inventory 18.1%, Accounts payable, 14.1%, Net profit margin, 2.7% (2) Marketable securities and other current liabilities will remain unchanged (3) Peabody desires a minimum cash balance of $481,000. (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 $285,000, and in 2024 $386,000 of depreciation will be taken (5) Accruals will rise to $497,000 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 (9) The sales forecast predicts $11.6 million in 2023 and $11.4 million in 2024 CITR a. Prepare a pro forma balance sheet dated December 31, 2024 Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, 2024 below (Round to the nearest dollar) Pro Forma Balance Sheet Peabody & Peabody December 31, 2024 Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ S $ $ Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.5 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 11.5%, Inventory 18.1%, Accounts payable, 14.1%, Net profit margin, 2.7% (2) Marketable securities and other current liabilities will remain unchanged (3) Peabody desires a minimum cash balance of $481,000. (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 $285,000, and in 2024 $386,000 of depreciation will be taken (5) Accruals will rise to $497,000 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 (9) The sales forecast predicts $11.6 million in 2023 and $11.4 million in 2024 CITR a. Prepare a pro forma balance sheet dated December 31, 2024 Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, 2024 below (Round to the nearest dollar) Pro Forma Balance Sheet Peabody & Peabody December 31, 2024 Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ S $ $
