A firm's current financial statements are in the following. It forecasts total sales will

increase by $10\%$ next year. Suppose both total costs and total assets are

proportional of sales. If the firm's debt level is fixed, its total equity next year will be

INCOME STATEMENT

Sales

Total costs

Net income

$$1,200$

$$1,000$

$$200$

BALANCE SHEET

$$1,200$

$$880$

$$1,400$

$$1,320$