1. Smapple expects a 5% increase in sales for 2020. It has prepared simplified financial statements for 2019. It would like to build proforma statements and calculate the plug-in variables to reconcile them (based on different assumptions). Simplified Income Statement - 2019 Sales $25,000 Costs $18,000 Net Income $7,000 Simplified Balance Sheet - 2019 Assets $17,000||Debt $6,000 Equity $11,000 Total $17,000 Total $17,000 a. Assume that all accounts on the income statement and balance sheet will increase proportionately as a result of a 5% increase in sales. What would be the plug-in variable to reconcile the statements? (Hint: calculate retained earnings first). b. INSTEAD, assume that Smapple has a 40% dividend payout ratio and that costs and assets will increase with sales but debt and equity will not. What would be the plug in variable now