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 $50,100 is desired. (2) Marketable securities will remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) Leonard will acquire a new machine costing $89,500. Total depreciation for the year will be $31,600. (6) Accounts payable represent 14.2% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 3.6%, and it expects to pay out $70,400 in cash dividends next year. (9) The most recent balance sheet follows PER Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Leonard Industries Balance Sheet Liabilities and Stockholders' Equity $45,000 Accounts payable 15,200 Accruals 255,500 Other current liabilities 339,700 Total current liabilities $655,400 Long-term debt 599,700 Common stock Retained earnings $1,255,100 Total liabilities and stockholders' equity $395,400 59,800 30,100 $485,300 350,800 199,500 219,500 $1,255,100 Total assets a. Use the judgmental approach to prepare a pro forma balance sheet for next year. b. How much, if any, additional financing will Leonard Industries require? Discuss. c. Could Leonard Industries adjust its planned dividend to avoid the situation described in part b? Explain how. Assets $ Current assets Cash Marketable securities Accounts receivable Inventories Total current assets $ Net fixed assets Total assets TA