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Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2022 Sales $ 6,500 Cost 5,100 Net income $ 1,400 BALANCE SHEET, YEAR-END 2021

Here are the abbreviated financial statements for Planners Peanuts:

INCOME STATEMENT, 2022
Sales $ 6,500
Cost 5,100
Net income $ 1,400
BALANCE SHEET, YEAR-END
2021 2022 2021 2022
Assets $ 10,500 $ 15,400 Debt $ 633 $ 1,000
Equity 9,867 14,400
Total $ 10,500 $ 15,400 Total $ 10,500 $ 15,400
  1. If sales increase by 10% in 2023 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item?
  2. What will be the value of this balancing item?

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