Question

can someone help me to solve all this problem .. please..

X P4-19 (Similar to) Question Help Proforma balance sheet Peabody & Peabody has 2019 sales of $10 9 million It wishes to analyze expected performance and financing needs for 2021-2 years ahead Given the following information respond to parts and be (1) The percent of sales for tems that vary directly with sales are as follows Accounts receivable 12% Inventory 1835 Accounts payable 14.5% Neprofit margin 27% (2) Marketable securities and other cument s we expected to remain unchanged (3) A mum cash balance of $475 000 is desired (4) A m achine o g 1648000 will be acquired in 2020 and equipment Costing $855 000 will be purchased in 2021 Total depreciation in 2020 is forecast as $28.000 and in 2021 5392.000 af depreciation will be taken (5) Accruals are expected to rise to $502 000 by the end of 2021 05) No sale of rement of long-term is expected No se o repurchase of common stock is expected 3) The vidend payout of 50% of net profits is expected to continue 9 Sales are expected to be $11 million in 2020 and $117 on in 2021 Compte the part of the proforma batance sheet for at & Day forecambe 1.2 the nearest do Pro Forma Balance Sheet Peabody & Peabody December 31, 2021 Mateus 600 195.000 1427 400 2.541100 Che t her formances 32 blow on the door ProFormance Show Peabody & Peabody

Answer 1

Pro Forma Balance Sheet
Peaboy & Peaboy
December 31,2021
Assets
Current Assets
Cash	$476,000
Marketable securities	$195,000
Accounts receivable	$1,427,400
Inventories	$2,141,100
Total current assets	$4,239,500
Net fixed assets	$4,825,000
Total assets	$9,064,500
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$1,696,500
Accruals	$502,000
Other current liabilities	$80,300
Total current liabilities	$2,278,800
Long term debt	$1,983,700
Total liabilities	$4,262,500
Common stock and retained earnings	$4,040,250
Eastimated funds required	$761,750
Working notes
Computation of accounts receivable,inventory and accounts payable
Sales expected during 2021	$11,700,000
Accounts receivable @ 12.20% of sales	$1,427,400
Inventory @ 18.30% of sales	$2,141,100
Accounts payable @ 14.50% of sales	$1,696,500
Computation of net fixed assets as on December 31,2021
Beginning balance, 1/1/2020	$4,002,000
Add: Machine purchased in 2020	$648,000
Less: Depreciation for the year 2020	($288,000)
Ending balance, 12/31/2020	$4,362,000
Beginning balance, 1/1/2021	$4,362,000
Add: Equipment purchased in 2021	$855,000
Less: Depreciation for the year 2021	($392,000)
Ending balance, 12/31/2021	$4,825,000
Computation of net profits for the years 2020 and 2021
	2020	2021
Sales	$11,800,000	$11,700,000
Net profit margin %	2.70%	2.70%
Net profits	$318,600	$315,900
Computation of common stock & retained earnings as on Dec 31,2021
Beginning balance, 1/1/2020	$3,723,000
Add: Net profit for the year 2020	$318,600
Less: Dividends @ 50% of net profits	($159,300)
Ending balance, 12/31/2020	$3,882,300
Beginning balance, 1/1/2021	$3,882,300
Add: Net profit for the year 2021	$315,900
Less: Dividends @ 50% of net profits	($157,950)
Ending balance, 12/31/2021	$4,040,250