The percents of sales for items that vary directly with sales are as follows: Accounts receivable; 12.2 %12.2%, Inventory; 18.2 %18.2%; Accounts payable, 13.6 %13.6%; Net profit margin, 2.6 %2.6%. (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $ 482 comma 000$482,000 is desired. (4) A new machine costing $ 647 comma 000$647,000 will be acquired in 20202020, and equipment costing $ 845 comma 000$845,000 will be purchased in 20212021. Total depreciation in 20202020 is forecast as $ 294 comma 000$294,000, and in 20212021 $ 388 comma 000$388,000 of depreciation will be taken. (5) Accruals are expected to rise to $ 503 comma 000$503,000 by the end of 20212021. (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 %50% of net profits is expected to continue. (9) Sales are expected to be $ 11.7$11.7 million in 20202020 and $ 12.0$12.0 million in 20212021. (10) The December 31, 20192019, balance sheet is here LOADING a. Prepare a pro forma balance sheet dated December 31, 20212021. b. Discuss the financing changes suggested by the statement prepared in part (a).