Pro forma balance sheet Randy \& Whiskers Enterprises has 2021 sales of $15.5 million. It wishes to analyze expected performance and financing needs for 2022. You are requested to compile a pro forma balance sheet. Given the following information, respond to parts a and b. (1) The balance sheet items vary directly with sales: accounts receivable (10%), inventory (15%), accounts payable (10%), and net profit margin (2%). (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $520,000 is desired. (4) A new equipment costing $20,000 will be purchased during 2022 , and a total depreciation in 2022 is forecast at $5,000. (5) Accruals are expected to rise to $660,000. (6) No sale or retirement of long-term debt is expected, and no common stock will be repurchased. (7) The dividend payout of 50% of net profits is expected to continue. (8) Sales are expected to decrease to $15,000,000. (9) The December 31, 2021, balance sheet follows. Based on the information provided, answer the following: a. Prepare a pro forma balance sheet dated December 31, 2022. b. Discuss the financing changes suggested by the statement prepared in part a. Randy \& Wiskers Enterprises Balance Sheet December 31, 2021 (\$000)