Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered (1) A minimum cash balance of $49,500 is desired (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $90,200 will be acquired during 2020. Total depreciation for the year will be $32,100. (6) Accounts payable represent 14.2% 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 4.2%, and it expects to pay out $69,500 in cash dividends during 2020. (9) The December 31, 2019, balance sheet follows 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 Industriess adjust its planned 2020 dividend to avoid the situation described in part b? Explain how. Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 $799,100 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses 600,100 $199,000 99,100 $99,900 Net profits before taxes Less: Taxes (rate 21%) 20,979 $78,921 Net profits after taxes Less: Cash dividends 20,300 To retained earnings $58,621 Red Queen Restaurants Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Accounts payable Taxes payable Assets $31,700 $100,600 Cash Marketable securities 18,200 20,800 Accounts receivable 149,800 Other current liabilities 4,100 $125,500 Inventories 99,900 Total current liabilities $299,600 $199,400 $150,000 Long-term debt Total current assets Net fixed assets 350,300 Common stock Retained earnings $175,000 Total liabilities and equity $649,900 $649,900 Total assets