Reference no: EM13530495
Pro forma balance sheet Peabody & Peabody has 2015 sales of $10 million. It wishes to analyze expected performance and financing needs for 2017, which is 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%
Inventory, 18%
Accounts payable, 14%
Net profit margin, 3%
(2) Marketable securities and other current liabilities are expected to remain unchanged.
(3) A minimum cash balance of $480,000 is desired.
(4) A new machine costing $650,000 will be acquired in 2016, and equipment costing $850,000 will be purchased in 2017. Total depreciation in 2016 is forecast as $290,000, and in 2017 $390,000 of depreciation will be taken.
(5) Accruals are expected to rise to $500,000 by the end of 2017.
(6) No sale or retirement of long-term debt is expected.
(7) No sale or repurchase of common stock is expected.
(8) The dividend payout of 50% of net profits is expected to continue.
(9) Sales are expected to be $11 million in 2016 and $12 million in 2017.
(10) The December 31, 2015, balance sheet follows.
Peabody & Peabody Balance Sheet December 31, 2015 ($000)
Assets Liabilities and stockholders' equity
Cash $ 400 Accounts payable $1,400
Marketable securities 200 Accruals 400
Accounts receivable 1,200 Other current liabilities 80
Inventories 1,800 Total current liabilities $1,880
Total current assets $3,600 Long-term debt 2,000
Net fixed assets 4,000 Total liabilities 3,880
Total assets $7,600 Common equity 3,720
Total liabilities and
stockholders' equity $7,600
a. Prepare a pro forma balance sheet dated December 31, 2017.
b. Discuss the financing changes suggested by the statement prepared in part a.
Please prepare in excel format
|
Find what would its weight be
: It is determined by immersing a crown in water that its volume is 26inc^3=4.2x10^-4m^3. What would its weight be if it were made of pure gold
|
|
What does gastric chief cells secrete
: What does gastric chief cells secrete? which nerve regulates saliva secretion, facial nerve or vagusnerve? Primates developed a more flattened face, which causedmore of a reliance on what sense?
|
|
Explain lithium iodide has a heat of formation of a lattice
: Lithium iodide (LiI) has a heat of formation of -272 kJ/mol and a lattice energy of -753 kJ/mol. The ionization energy of Li(g) is 520 kJ/mol, the bond energy of I2(g) is 151 kJ/mol, and the electron affinity of I(g) is -295 kJ/mol.
|
|
More common than theother bateria or fungal
: In your own words. Which do you think is more common than theother bateria or fungal? Or, are they nearly equal in number? In your own words. Explain why some things decay faster thanothers.
|
|
Discuss the financing changes suggested by the statement
: Discuss the financing changes suggested by the statement prepared
|
|
What is the magnitude and direction of the force on the muon
: At a certain point on Earth's surface in the southern hemisphere, the magnetic field has a magnitude of 4.9 10-5 T, What is the magnitude and direction of the force on the muon
|
|
Explain which of the ions have noble gas configurations
: Which of the following ions have noble gas configurations- Fe2+, Fe3+, Sc3+, Co3+. Rank the following from most polar to least polar: N2, HF, HCN, H2O
|
|
What are the major components of the scientific method
: What are the major components of the scientific method and what are the goals of using the scientific method?
|
|
Find what is the mechanical energy lost due to friction
: A sledge loaded with bricks has a total mass of 18.4 kg and is pulled at constant speed by a rope inclined at 19.2° above the horizontal. What is the mechanical energy lost due to friction
|