Preparation of pro forma balance and interpretation

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Reference no: EM1319537

Peabody & Peabody Balance Sheet December 31, 2006 ($000)

Assets

Liabilities & 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

Common equity

$3,720

Total assets

$7,600

Total Liabilities &stockholders' equity

$7,600

A. Prepare a pro forma balance sheet dated December 31, 2008.

B. Discuss the financing changes suggested by the statement prepared in part A.

Reference no: EM1319537

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