Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.2 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 percent of sales for items that vary directly with sales are as follows: Accounts receivable, 12A%, Inventory, 17.7%, Accounts payable, 14.4%; Net profit margin, 3.1% (2) Marketable securities and other current liabilities will remain unchanged (3) Peabody desires a minimum cash balance of $484,000, (4) A new machine costing S852,000 will be acquired in 2023, and equipment costing $850,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $295,000, and in 2024 $390,000 of depreciation will be taken (5) Accruals will rise to 5502,000 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 $11.0 million in 2023 and $11.1 million in 2024 0. a. Prepare a pro forma balance sheet dated December 31, 2024. Complete the assets part of the proforma balance shoot for Peabody & Peabody for December 31, 2024 below: (Round to the nearest dollar) Den nrma Balance Sheet Homework: Chapter 4 to) Part 1 of 3 100 points Points: 0 of 20 Save margin, 3.1% (2) Marketablo securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $484,000 (4) A new machine costing 5852,000 will be acquired in 2023, and equipment costing $850,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $295,000, and in 2024 $390,000 of depreciation will be taken (5) Accruals will rise to $502,000 by the end of 2024 (6) There will be no sale or retirement of long-term dett. (7) No sale or repurchase of common stock is expected (8) The dividend payout of 50% of not profits will continue (9) The salos forecast predicts $11.0 million in 2023 and 811.1 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 (a). 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 (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 $396,000 Accounts payable Marketable securities 197,000 Accruals Accounts receivable 1,200,000 Other current liabilities Inventories 1,798,000 Total current liabilities Total current assets $3,591,000 Long-term debt Net fixed assets 4,005,000 Common stock Total liabilities and Total assets $7,596,000 stockholders' equity $1,404,000 397,000 80,200 $1,881,200 1,995,800 3,719,000 ard ele $7,596,000 elp i Print Done
