Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.6 million. It wishes to analyze expected performance and financing needs for 2021-2 years ahead. Given the following information,...


Using the given information, create a pro forma balance sheet. Covering all Assets and Liabilities listed within both photos.


Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.6 million. It wishes to analyze expected performance and financing needs for 2021-2 years ahead. Given the following information, respond to parts a. and b.<br>(1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.3%, Inventory: 17.6%, Accounts payable, 13.9%; Net profit margin, 2.7%.<br>(2) Marketable securities and other current liabilities are expected to remain unchanged.<br>(3) A minimum cash balance of $478,000 is desired.<br>(4) A new machine costing $651,000 will be acquired in 2020, and equipment costing $854,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $295,000, and in 2021 $394,000 of depreciation will be taken.<br>(5) Accruals are expected to rise to $499,000 by the end of 2021.<br>(6) No sale or retirement of long-term debt is expected.<br>(7) No sale or repurchase of common stock is expected.<br>(8) The dividend payout of 50% of net profits is expected to continue.<br>(9) Sales are expected to be $11.8 million in 2020 and $11.8 million in 2021.<br>(10) The December 31, 2019, balance sheet is here<br>a. Prepare a pro forma balance sheet dated December 31, 2021.<br>b. Discuss the financing changes suggested by the statement prepared in part (a)<br>a. Prepare a pro forma balance sheet dated December 31, 2021.<br>Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, 2021 below. (Round to the nearest dollar)<br>Pro Forma Balance Sheet<br>Data Table<br>Peabody & Peabody<br>December 31, 2021<br>Assets<br>(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet<br>Current assets<br>Leonard Industries Balance Sheet December 31, 2019<br>Liabilities and Stockholders' Equity<br>Accounts payable<br>Cash<br>%24<br>Assets<br>Cash<br>Marketable securities<br>Accounts receivable<br>$399,000<br>199,000<br>$1,397,000<br>Marketable securities<br>Accruals<br>395,000<br>Accounts receivable<br>%24<br>1,203,000<br>Other current liabilities<br>Total current liabilities<br>Long-term debt<br>Common stock<br>Total liabilities and<br>stockholders' equity<br>80,300<br>$1,872,300<br>2,016,700<br>3,716,000<br>Inventories<br>Total current assets<br>Net fxed assets<br>1.805,000<br>$3,606,000<br>3,999.000<br>Inventories<br>Total current assets<br>Net foxed assets<br>Total assets<br>$7,605.000<br>$7,605,000<br>Total assets<br>%24<br>Print<br>Done<br>

Extracted text: Pro forma balance sheet Peabody & Peabody has 2019 sales of $10.6 million. It wishes to analyze expected performance and financing needs for 2021-2 years ahead. Given the following information, respond to parts a. and b. (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.3%, Inventory: 17.6%, Accounts payable, 13.9%; Net profit margin, 2.7%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $478,000 is desired. (4) A new machine costing $651,000 will be acquired in 2020, and equipment costing $854,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $295,000, and in 2021 $394,000 of depreciation will be taken. (5) Accruals are expected to rise to $499,000 by the end of 2021. (6) No sale or retirement of long-term debt is expected. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is expected to continue. (9) Sales are expected to be $11.8 million in 2020 and $11.8 million in 2021. (10) The December 31, 2019, balance sheet is here a. Prepare a pro forma balance sheet dated December 31, 2021. b. Discuss the financing changes suggested by the statement prepared in part (a) a. Prepare a pro forma balance sheet dated December 31, 2021. Complete the assets part of the pro forma balance sheet for Peabody & Peabody for December 31, 2021 below. (Round to the nearest dollar) Pro Forma Balance Sheet Data Table Peabody & Peabody December 31, 2021 Assets (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet Current assets Leonard Industries Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Accounts payable Cash %24 Assets Cash Marketable securities Accounts receivable $399,000 199,000 $1,397,000 Marketable securities Accruals 395,000 Accounts receivable %24 1,203,000 Other current liabilities Total current liabilities Long-term debt Common stock Total liabilities and stockholders' equity 80,300 $1,872,300 2,016,700 3,716,000 Inventories Total current assets Net fxed assets 1.805,000 $3,606,000 3,999.000 Inventories Total current assets Net foxed assets Total assets $7,605.000 $7,605,000 Total assets %24 Print Done
Liabilities and stockholders' equity<br>Current liabilities<br>Accounts payable (14.7%)<br>Accruals<br>Other current liabilities<br>Total current liabilities<br>Long-term debts<br>Total liabilities<br>Common stock and Retained Earnings<br>External funds required<br>Total liabilities and stockholders' equity<br>

Extracted text: Liabilities and stockholders' equity Current liabilities Accounts payable (14.7%) Accruals Other current liabilities Total current liabilities Long-term debts Total liabilities Common stock and Retained Earnings External funds required Total liabilities and stockholders' equity
Jun 08, 2022
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