Pro forma balance sheet Peabody & Peabody has

2022 sales of $10.3 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; 11.9%, Inventory; 18.4%; Accounts payable, 14.2%; Net profit margin, 2.8%.

(2) Marketable securities and other current liabilities will remain unchanged.

(3) Peabody desires a minimum cash balance of $478,000.

(4) A new machine costing $650,000 will be acquired in 2023, and equipment costing $851,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $292,000,and in 2024 $385,000 of depreciation will be taken.

(5) Accruals will rise to $503,000 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 $11.5 million in 2023 and $11.5 million in 2024.

(10) The December 31, 2022, balance sheet is here

Assets			Liabilities and Stockholders Equity
Cash	$398,000		Accounts payable	$1,403,000
Marketable securities	199000		Accruals	400000
Accounts receivable	1200000		Other current liabilities	80200
Inventories	1805000		Total current liabilities	$1,883,200
Total current assets	$3,602,000		Long-term debt	2002800
Net fixed assets	4004000		Common stock	3720000
Total assets	$7,606,000		Total liabilities and stockholders' equity	$7,606,000

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

2024.

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

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

2024.

Part 2

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	$

Please help!