- Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for next year. The firm expects sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,600 is desired. (2) Marketable securities will remain unchanged. Data Table (3) Accounts receivable represent 9.8% of sales. (4) Inventories represent 11.9% of sales. (5) Leonard will acquire a new machine costing $89,700. Total depreciation for the year will be $32,000. (6) Accounts payable represent 14.3% of sales. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $69,900 in cash dividends next year. Leonard Industries Balance Sheet (9) The most recent balance sheet follows Assets Liabilities and Stockholders' Equity Cash $44,800 Accounts payable a. Use the judgmental approach to prepare a pro forma balance sheet for next year. Marketable securities 14,600 Accruals b. How much if any additional financing will leonard Industries require? Discuss Accounts receivable 254,800 Other current liabilities a. Use the judgmental approach to prepare a pro forma balance sheet for Leonard Industries. Inventories 339,600 Total current liabilities Complete the assets part of the pro forma balance sheet for Leonard Industries below. (Round to the nearest dollar.) Total current assets $653,800 Long-term debt Net fixed assets 599,800 Common stock Pro Forma Balance Sheet Retained earnings Total assets $1,253,600 Total liabilities and stockholders' equity Leonard Industries $394,900 59,700 30,100 $484,700 349,300 200,100 219,500 $1,253,600 Assets Print Done Current assets Cash $ Marketable securities Accounts receivable Inventories Total current assets $ Net fixed assets Windows'u Etkinletir X Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for next year. The firm expects sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,600 is desired. (2) Marketable securities will remain unchanged. Data Table (3) Accounts receivable represent 9.8% of sales. (4) Inventories represent 11.9% of sales. (5) Leonard will acquire a new machine costing $89,700. Total depreciation for the year will be $32,000 (6) Accounts payable represent 14.3% of sales. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $69,900 in cash dividends next year. Leonard Industries Balance Sheet (9) The most recent balance sheet follows Assets Liabilities and Stockholders' Equity Cash $44,800 Accounts payable a. Use the judgmental approach to prepare a pro forma balance sheet for next year. Marketable securities 14,600 Accruals b. How much if any additional financing will leonard Industries require? Discuss Accounts receivable 254,800 Other current liabilities Net fixed assets Inventories 339,600 Total current liabilities $653,800 Total assets Total current assets $ Long-term debt Net fixed assets 599,800 Common stock Complete the liabilities and stockholders' equity part of the pro forma balance sheet for Leonard Industries below: (RO Retained earnings Total assets $1,253,600 Total liabilities and stockholders' equity Pro Forma Balance Sheet $394,900 59,700 30,100 $484,700 349,300 200,100 219,500 $1,253,600 Leonard Industries Print Done Liabilities and stockholders' equity Current liabilities Accounts payable $ Accruals Other current liabilities Total current liabilities $ Long-term debt Windows'u Etkinletir X Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for next year. The firm expects sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,600 is desired. (2) Marketable securities will remain unchanged. Data Table (3) Accounts receivable represent 9.8% of sales. (4) Inventories represent 11.9% of sales. (5) Leonard will acquire a new machine costing $89,700. Total depreciation for the year will be $32,000. (6) Accounts payable represent 14.3% of sales. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $69,900 in cash dividends next year. Leonard Industries Balance Sheet (9) The most recent balance sheet follows Assets Liabilities and Stockholders' Equity Cash $44,800 Accounts payable a. Use the judgmental approach to prepare a pro forma balance sheet for next year. Marketable securities 14,600 Accruals b. How much if any additional financing will leonard Industries require? Discuss Accounts receivable 254,800 Other current liabilities Current liabilities Inventories 339,600 Total current liabilities Accounts payable $ Total current assets $653.800 Long-term debt Net fixed assets Accruals 599,800 Common stock Retained earnings Other current liabilities Total assets $1,253,600 Total liabilities and stockholders' equity Total current liabilities $ $394,900 59,700 30,100 $484,700 349,300 200, 100 219,500 $1,253,600 Print Done Long-term debt Total liabilities Common stock $ Retained earnings Total stockholders' equity External funds required Total liabilities and stockholders' equity $ b. How much, if any, additional financing will Leonard Industries require? Discuss. (Select all the answers that apply.) Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for next year. The firm expects sales to total $3,000,000. The following information has been gathered. Data Table - X (1) A minimum cash balance of $49,600 is desired. (2) Marketable securities will remain unchanged. (3) Accounts receivable represent 9.8% of sales. (4) Inventories represent 11.9% of sales. (5) Leonard will acquire a new machine costing $89,700. Total depreciation for the year will be $32,000 (6) Accounts payable represent 14.3% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $69,900 in cash dividends next year. (9) The most recent balance sheet follows (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. Use the judgmental approach to prepare a pro forma balance sheet for next year. b. How much if any additional financing will leonard Industries require? Discuss Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Leonard Industries Balance Sheet Liabilities and Stockholders' Equity $44,800 Accounts payable 14,600 Accruals 254,800 Other current liabilities 339,600 Total current liabilities $653,800 Long-term debt 599,800 Common stock Retained earnings $1,253,600 Total liabilities and stockholders' equity Total liabilities and stockholders' equity $394,900 59,700 30,100 $484,700 349,300 200, 100 219,500 $1,253,600 b. How much, if any, additional financing will Leonard Industries require? Discuss. (Select all the answers that apply.) Total assets A. Based on the forecast and desired level of certain accounts, the financial manager should arrange for credit of B. Leonard Industries' retained earnings are enough to cover all of the company's desired level of certain account C. If financing cannot be obtained, one or more of the constraints must be changed. ID. Based on the forecast and desired level of certain accounts, the financial manager should arrange for credit of Print Done c. Could Leonard Industries adjust its planned dividend to avoid the situation described in part b? Explain how. (Select all the answers that apply.) A. If Leonard Industries reduced its dividend to $44,000 or less, the firm would not need any additional financing. B. By reducing the dividend, more cash is retained by the firm to cover the growth in other asset accounts. If Leonard Industries reduced its dividend to $49,000 or less, the firm would not need any additional financing D. Leonard Industries' retained earnings are enough to cover all of the company's desired level of certain accounts including dividends. C. Windows'u Etkinletir
