The following financial information on Neal Inc.

Income Statement		Balance Sheet
Sales	$25,000	Assets	$10,700	Debt	$6,100
Costs	13,500			Equity	4,600
Net income	$11,500	Total	$10,700	Total	$10,700

The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well.

Assume no taxes. Create pro forma statements and reconcile them. What is the plug variable?

Multiple Choice

• $12,244

• $12,234

• $12,239

• $12,259

• $23,788