Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.9 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: 18.2%; Accounts payable, 13.6%; Net profit margin, 2.6%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $479,000. (4) A new machine costing $650,000 will be acquired in 2023, and equipment costing $848,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $289,000, and in 2024 $389,000 of depreciation will be taken (5) Accruals will rise to $500,000 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 $12.1 million in 2023 and $11.7 million in 2024. a. Prepare a pro forma balance sheet dated December 31, 2024. Complete the assets part of the pro forma balance sheetfor Peabody & Peabody for December 31, 2024 below: (Round to the nearest dollar.) JIL Homework: Chapter 4 Question 7, P4-20 (similar to) Part 1 of 3 HW Score: 58.41%, 58.41 of 100 points Points: 9.41 of 20 Save Accounts payable, 13.6%; Net profit margin, 2.6%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $479,000. (4) A new machine costing $650,000 will be acquired in 2023, and equipment costing $848,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $289,000, and in 2024 $389,000 of depreciation will be taken. (5) Accruals will rise to $500,000 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 $12.1 million in 2023 and $11.7 million in 2024. (10) The December 31, 2022, balance sheet is here a. Prepare a pro forma balance sheet dated December 31, 2024 b. Discuss the financing changes suggested by the statement prepared in part (el 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) 7) 8) 9) (10) a. P b. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Peabody & Peabody Balance Sheet December 31, 2022 Assets Liabilities and Stockholders' Equity Cash $405,000 Accounts payable $1,401,000 Marketable securities 199,000 Accruals 399,000 Accounts receivable 1,201,000 Other current liabilities 80,400 Inventories 1,804,000 Total current liabilities $1,880,400 Total current assets $3,609,000 Long-term debt 2,011,600 Net fixed assets 4,001,000 Common stock 3,718,000 Total liabilities and Total assets $7,610,000 stockholders' equity $7,610,000 a. P Con near
