We have the financial statements for Planners Peanuts. Now suppose the following:

A- Sales increased by 20% in 2013;

B-The company uses a strict percentage of sales planning model: i.e. all items on the income statement and balance sheet also increase by the same 20%.

Question:

1-What must be the balancing item?

2- What will be its value? Please I need answer and explnation for the question above

Income statement	2012	2013
Sales	$2000
Cost	$1500
Net Income	$500

Balance Sheet, year end,

	2011	2012	2013		2011	2012	2013
Assets	$2500	$3000		Debt	$833	$1000
				Equity	$1667	$2000
Total	$2500	$3000			$2500	$3000