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. (3) Accounts receivable represent 9.8% of sales. (4) Inventories represent 12.2% of sales. (5) Leonard will acquire a new machine costing $89,900. Total depreciation for the year will be $32,500. (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 3.9%, and it expects to pay out $69,700 in cash dividends next year. (9) The most recent balance sheet follows 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. c. Could Leonard Industries adjust its planned dividend to avoid the situation described in part b? Explain how. a. Use the judgmental approach to prepare a pro forma balance sheet for Leonard Industries. Complete the assets part of the pro forma balance sheet for Leonard Industries below: (Round to the nearest dollar.) Pro Forma Balance Sheet Leonard Industries Assets Current assets Cash Marketable securities Accounts receivable i Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) - X Leonard Industries Balance Sheet Assets Cash Liabilities and Stockholders' Equity $45,300 Accounts payable $394,800 Marketable securities 15,400 Accruals 60,500 Accounts receivable 255,400 Other current liabilities 30,300 Inventories 339,700 Total current liabilities $485,600 Total current assets $655,800 Long-term debt 350,500 Net fixed assets 600,400 Common stock 199,700 Retained earnings 220,400 Total assets $1,256,200 Total liabilities and stockholders' equity $1,256,200 Print Done