Need help with questions A & B

Pro forma balance sheet Peabody& Peabody has 2015 sales of $10.4 million. It wishes to analyze expected performance and financing needs for 2017-2 years ahead Given the folowing information, respond to parts a. and b (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable 12.1%, Inventory: 1 8 4%, Accounts payable, 143% Net profit margin 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged 3) A minimum cash balance o $476.000 is desired (4) A new machine costing $547,000 will be acquired in 2016, and equipment costing $850,000 will be purchased in 2017, Total depreciation in 2016 is forecast as $290,000, and in 2017 $388000 of depreciation wil be taken (5) Accruals are expected to rise to $495.000 by the end of 2017 (6) No sale or retirement of long-tenm debt is expected 7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is e|pected to continue (9) Sales are expected to be $11.3 milion in 2016 and $11.5 million in 2017 a. Prepare a pro forma balance sheet dated December 31, 2017. Complete the assets part of the pro forma balance sheet for Peabody &Peabody for December 31, 2017 below Round to the nearest dolar.) Pro Forma Balance Sheet Pro forma balance sheet Peabody& Peabody has 2015 sales of $10.4 million. It wishes to analyze expected performance and financing needs for 2017-2 years ahead Given the folowing information, respond to parts a. and b (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable 12.1%, Inventory: 1 8 4%, Accounts payable, 143% Net profit margin 2.9% (2) Marketable securities and other current liabilities are expected to remain unchanged 3) A minimum cash balance o $476.000 is desired (4) A new machine costing $547,000 will be acquired in 2016, and equipment costing $850,000 will be purchased in 2017, Total depreciation in 2016 is forecast as $290,000, and in 2017 $388000 of depreciation wil be taken (5) Accruals are expected to rise to $495.000 by the end of 2017 (6) No sale or retirement of long-tenm debt is expected 7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is e|pected to continue (9) Sales are expected to be $11.3 milion in 2016 and $11.5 million in 2017 a. Prepare a pro forma balance sheet dated December 31, 2017. Complete the assets part of the pro forma balance sheet for Peabody &Peabody for December 31, 2017 below Round to the nearest dolar.) Pro Forma Balance Sheet