Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):

Income Statement		Balance Sheet
Sales	$ 25,000	Assets	$ 10,100	Debt	$ 4,400
Costs	13,200			Equity	5,700
Net income	$ 11,800	Total	$ 10,100	Total	$ 10,100

The company has predicted a sales increase of 9 percent. It has predicted that every item on the balance sheet will increase by 9 percent as well.

Create the pro forma statements and reconcile them. What is the plug variable here?

Multiple Choice

• $12,328

• $12,334

• $20,753

• $12,349

• $12,323