Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for next...
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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 $49,800 is desired. (2) Marketable securities will remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.4% of sales. (5) Leonard will acquire a new machine costing $90,000. Total depreciation for the year will be $32,400. (6) Accounts payable represent 14.5% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.2%, and it expects to pay out $69,900 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. h How much if any additional financing will Leonard Industries require? Discuss 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.) Assets Current assets Cash Pro Forma Balance Sheet Leonard Industries Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ $ $ Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Leonard Industries Balance Sheet Liabilities and Stockholders' Equity Accounts payable Accruals Other current liabilities Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $44,800 15,000 254,500 340,200 $654,500 599,700 $1,254,200 Print Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Done - X $395,50 59,70 30,20 $485,40 348,00 200,50 220,30 $1,254,20 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 $49,800 is desired. (2) Marketable securities will remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.4% of sales. (5) Leonard will acquire a new machine costing $90,000. Total depreciation for the year will be $32,400. (6) Accounts payable represent 14.5% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 4.2%, and it expects to pay out $69,900 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. h How much if any additional financing will Leonard Industries require? Discuss 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.) Assets Current assets Cash Pro Forma Balance Sheet Leonard Industries Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ $ $ Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Leonard Industries Balance Sheet Liabilities and Stockholders' Equity Accounts payable Accruals Other current liabilities Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $44,800 15,000 254,500 340,200 $654,500 599,700 $1,254,200 Print Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Done - X $395,50 59,70 30,20 $485,40 348,00 200,50 220,30 $1,254,20
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Pro forma statements look like regular statements except theyre based on what ifs not real financial ... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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