Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $21,000 Assets $9,700 Debt $4,300 Costs 13,500 Equity 5,400 Net income $7,500 Total $9,700 Total $9,700

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

$7,689

$7,670

$7,665

$15,902

$7,674