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 $50,200 is desired. (2) Marketable securities will remain unchanged. (3) Accounts receivable represent 10.3% of sales. (4) Inventories represent 12.4% of sales. (5) Leonard will acquire a new machine costing $90,100. Total depreciation for the year will be $32,200. (6) Accounts payable represent 14.5% of sales. (7) Accruals, other current liabilities, long-term debt, and common stock will remain unchanged. (8) The firm's net profit margin is 3.8%, and it expects to pay out $69,500 in cash dividends next year. (9) The most recent balance sheet follows E.
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. a. Use the judgmental approach to prepare a pro forma balance sheet for Leonard Industries. Complete the assets part of the pro forma balance sheet for Leonard Industries below: (Round to the nearest dollar.) Pro Forma Balance Sheet 12d.
Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Leonard Industries Balance Sheet Liabilities and Stockholders' Equity $45,200 Accounts payable 15,500 Accruals 254,500 Other current liabilities 340,300 Total current liabilities $655,500 Long-term debt 600,300 Common stock Retained earnings $1,255,800 Total liabilities and stockholders' equity $394,900 59,900 29,600 $484,400 352,100 199,700 219,600 $1,255,800 Total assets Print Done