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

Income Statement		Balance Sheet
Sales	$22,000	Assets	$10,100	Debt	$4,200
Costs	13,400			Equity	5,900
Net income	$8,600	Total	$10,100	Total	$10,100

The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well.

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

Multiple Choice

• $16,835

• $8,897

• $8,865

• $8,878

• $8,871