Archie Inc. creates pro forma financial statements for the upcoming year. They

assume that all variables $($i$.$e$.$ revenue, costs, income, assets, etc.$)$ will grow by the

same percentage. Due to the assumed growth in income, debt plus equity does not

sum up to total assets because of the addition of retained earnings. To balance the

books, the CFO decided he must retire the outstanding debt. Which option is the

most correct?