- Pro Forma Balance Sheet Peabody Peabody Has 2022 Sales Of 10 5 Million It Wishes To Analyze Expected Performance And 1 (19.26 KiB) Viewed 48 times
- Pro Forma Balance Sheet Peabody Peabody Has 2022 Sales Of 10 5 Million It Wishes To Analyze Expected Performance And 2 (19.26 KiB) Viewed 48 times
- Pro Forma Balance Sheet Peabody Peabody Has 2022 Sales Of 10 5 Million It Wishes To Analyze Expected Performance And 3 (26.94 KiB) Viewed 48 times
- Pro Forma Balance Sheet Peabody Peabody Has 2022 Sales Of 10 5 Million It Wishes To Analyze Expected Performance And 4 (64.95 KiB) Viewed 48 times
- Pro Forma Balance Sheet Peabody Peabody Has 2022 Sales Of 10 5 Million It Wishes To Analyze Expected Performance And 5 (64.95 KiB) Viewed 48 times
Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 2024-2 years alwad Given the following information, pond to part and b. (1) The percents of sales for items that vary directly with sales are as follows Accounts receivable 12 2%, loventory, 185%, Accounts payable, 13 5%, Net profit margin 3.5% (2) Marketable securities and other current liabilities will remain unchanged (3) Peabody desires a minimum cash balance of $483.000 (4) A new machine costing $653.000 will be acquired in 2023, and equipment costing $848,000 will be purchased in 2024 Total depreciation in 2023 is forecast as $257,000, and in 2024 5387,000 of depreciation will be taken by the (6) There will be no sale or retirement of long-terms debt Accruals will rise (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 $11.3 million in 2023 and $11.4 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 financing changes suggested by the statement prepared in part (a).
Assets Cash Marketable securities Accounts receivable Inventories Net fixed assets Total assets Peabody & Peabody Balance Sheet December 31, 2022 $405,000 195,000 1,204,000 1,804,000 $3,608,000 3,997,000 $7,605,000 Total current assets. Liabilities and Stockholders' Equity Accounts payable Accruals Other current liabilities Long-term debt Common stock Total liabilities and Total current liabilities stockholders' equity $1,397,000 398,000 79,700 $1,874,700 2,010,300 3,720,000 $7,605,000
Pro forma balance sheet Peabody & Peabody has 2022 sales of $10.5 million. It wishes to analyze expected performance and financing needs for 2024-2 years ahead. Given the following information, respond to parts a. and b. (1) The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.2%, Inventory: 18.5%, Accounts payable, 13.6%, Net profit margin, 3.5%. (2) Marketable securities and other current liabilities will remain unchanged. (3) Peabody desires a minimum cash balance of $483,000. (4) A new machine costing $653,000 will be acquired in 2023, and equipment costing $848,000 will be purchased in 2024. Total depreciation in 2023 is forecast as $287,000, and in 2024 $387,000 of depreciation will be taken. (5) Accruals will rise to $505,000 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 $11.3 million in 2023 and $11.4 million in 2024 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 December 31, 2024 below (Round to the nearest dollar) Pro Forma Balance Sheet Peabody & Peabody December 31, 2024 + Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets $ Total assets Complete the abilities and stockholders' equity part of the pro forma balance sheet for Peabody & Peabody for December 31, 2024 below. (Round to the nearest dollar Pro Forma Balance Sheet Peabody & Peabody December 31, 2024 Liabilities and stockholders' equity Cunent liabilities Accounts payable Accruals Other current Kabities Total curront Eabilities Long-term debt $ sssss $ S $