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Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales $ 4,500 Cost 3,500 Net income $1,000 Assets BALANCE SHEET, YEAR-END 2018
Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales $ 4,500 Cost 3,500 Net income $1,000 Assets BALANCE SHEET, YEAR-END 2018 2019 2018 $ 6,500 $11,000 Debt $ 833 Equity 5,667 $ 6,500 $11,000 Total $6,500 2019 $1.000 10.000 $11,000 Total a. If sales increase by 10% in 2020 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? b. What will be the value of this balancing item? a. Balancing item Value b
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