Problem 19-9 Percentage-of-Sales Models (LO2)

Here are the abbreviated financial statements for Planners Peanuts:

Income Statement, 2015Sales$3,410Costs930

Net income$2,480

Balance Sheet, Year-End2014201520142015Assets$4,420$5,550Debt$1,340$1,840Equity3,0803,710

Total$4,420$5,550Total$4,420$5,550

If sales increase by 36% in 2016, and the company uses a percentage-of-sales planning model (meaning that all items on the income and balance sheet also increase by 36%), what must be the balancing item?The balancing item is(Click to select)

sales.

costs.

dividends.

What will be its value?(Round your answer to 1 decimal place.)Value of the balancing item$