Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,900 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 9.9% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $89,500 will be acquired during 2020. Total depreciation for the year will be $31,900. (6) Accounts payable represent 14.3% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock are expected to remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $70,200 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows B. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity $44,800 Accounts payable 14,900 Accruals 255,500 Other current liabilities 339,500 Total current liabilities $654,700 Long-term debt 599,700 Common stock Retained earnings $1,254,400 Total liabilities and stockholders' equity $394,900 59,700 29,900 $484,500 349,800 199,800 220,300 $1,254,400 Total assets a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2020, for Leonard Industries. b. How much, if any, additional financing will Leonard Industries require in 2020? Discuss. c. Could Leonard Industries adjust its planned 2020 dividend to avoid the situation described in part b? Explain how. December 31, 2020 Assets Current assets Cash $ Marketable securities Accounts receivable Inventories HITT Total current assets $ Net fixed assets Total assets Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check Answer Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,900 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 9.9% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $89,500 will be acquired during 2020. Total depreciation for the year will be $31,900. (6) Accounts payable represent 14.3% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock are expected to remain unchanged. (8) The firm's net profit margin is 4.3%, and it expects to pay out $70,200 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows B. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity $44,800 Accounts payable 14,900 Accruals 255,500 Other current liabilities 339,500 Total current liabilities $654,700 Long-term debt 599,700 Common stock Retained earnings $1,254,400 Total liabilities and stockholders' equity $394,900 59,700 29,900 $484,500 349,800 199,800 220,300 $1,254,400 Total assets a. Use the judgmental approach to prepare a pro forma balance sheet dated December 31, 2020, for Leonard Industries. b. How much, if any, additional financing will Leonard Industries require in 2020? Discuss. c. Could Leonard Industries adjust its planned 2020 dividend to avoid the situation described in part b? Explain how. December 31, 2020 Assets Current assets Cash $ Marketable securities Accounts receivable Inventories HITT Total current assets $ Net fixed assets Total assets Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check