Using the financial information for Gerrard Corp. below create the pro forma financial statements and reconcile them assuming no income taxes.

Income Statement		Balance Sheet
Sales	$21,000	Assets	$9,800	Debt	$4,500
Costs	14,200			Equity	5,300
Net income	$6,800	Total	$9,800	Total	$9,800

The company has predicted a sales increase of 8 percent. It has predicted that every item on the balance sheet will increase by 8 percent as well.

Compute the plug variable here?for Gerrard Corp.

Multiple Choice

• $6,907

• $15,560

• $6,920

• $6,903

• $6,899