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Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 46,500 Assets $ 20,500 Debt

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

Income Statement Balance Sheet
Sales $ 46,500 Assets $ 20,500 Debt $ 6,500
Costs 38,780 Equity 14,000
Net income $ 7,720 Total $ 20,500 Total $ 20,500

The company has predicted a sales increase of 14 percent. It has predicted that every item on the balance sheet will increase by 14 percent as well.

Create the pro forma statements and reconcile them. (Input all amounts as positive values. Do not round intermediate calculations.)

Pro forma income statement Pro forma balance sheet
Sales $ Assets $ Debt $
Costs Equity
Net income $ Total $ Total $

What is the plug variable?

The plug variable is

in the amount of $ .

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