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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 |
- 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?
- What will be the value of this balancing item?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
