a. If sales increase by 25% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 25%), what must be the balancing item?

b. What will be the value of this balancing item?

Please show all work.

Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales $ 9,000 Cost 7,100 Net income $ 1,900 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 6,500 $ 9,500 Debt Equity $ 6,500 $9,500 Total 2018 $ 853 5,647 $6,500 2019 $1,000 8,500 $9,500 Total a. If sales increase by 25% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the Income and balance sheet also increase by 25%), what must be the balancing item? b. What will be the value of this balancing item? Answer is not complete. a. Dividends Balancing item Value b