Whoever answers this can you do step by step please.
(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 12.3% of sales. (5) A new machine costing $90,100 will be acquired during 2020. Total depreciation for the year will be $32,300. (6) Accounts payable represent 14.4% 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 3.9%, and it expects to pay out $70,400 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows E. 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. 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 14,600 Accruals 255,400 Other current liabilities 340,400 Total current liabilities $655,200 Long-term debt 600,300 Common stock Retained earnings $1,255,500 Total liabilities and stockholders' equity $395,100 59,800 29,600 $484,500 350,500 200,500 220,000 $1,255,500 Total assets (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 12.3% of sales. (5) A new machine costing $90,100 will be acquired during 2020. Total depreciation for the year will be $32,300. (6) Accounts payable represent 14.4% 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 3.9%, and it expects to pay out $70,400 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows E. 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. 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 14,600 Accruals 255,400 Other current liabilities 340,400 Total current liabilities $655,200 Long-term debt 600,300 Common stock Retained earnings $1,255,500 Total liabilities and stockholders' equity $395,100 59,800 29,600 $484,500 350,500 200,500 220,000 $1,255,500 Total assets
