Question list

Question $1$

Question $2$

Question $3$

Question $4$

$(1)$ The percents of sales for items that vary directly with sales are as follows: Accounts receivable; $11\mathrm{.}9\%,$ Inventory; $17\mathrm{.}9\%$; Accounts payable, $14\mathrm{.}5\%$; Net profit margin, $3\mathrm{.}3\%.$

$(2)$ Marketable securities and other current liabilities will remain unchanged

$(3)$ Peabody desires a minimum cash balance of $$476,000$

depreciation will be taken.

$(5)$ Accruals will rise to $$499,000$ by the end of $2024$

$(6)$ There will be no sale or retirement of long$-$term debt

$(7)$ No sale or repurchase of common stock is expected.

$(8)$ The dividend payout of $50\%$ of net profits will continue

$(9)$ The sales forecast predicts $$12\mathrm{.}0$ million in $2023$ and $$11\mathrm{.}8$ million in $2024$

$(10)$ The December $31,2022,$ balance sheet is here

a$.$ Prepare a pro forma balance sheet dated December $31,2024.$

b$.$ Discuss the financina chanqes suquested by the statement prepared in part $($a$).$

a$.$ Prepare a pro forma balance sheet dated December $31,2024$

Complete the assets part of the pro forma balance sheet for Peabody & Peabody for

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

Peabody & Peabody Balance Sheet December $31,2022$