Accounting Assignment | College Homework Help

Help Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $9,000 Cost 7,100 Net income $1,900 BALANCE 2019 BALANCE SHEET, YEAR-END 2018 2019 $6,500 $9,500 Debt Equity $6,500 $9,500 Total Dobe 2018 $ 853 5,647 $6,500 2019 $1,000 8,500 $9,500 Total a. If sales increase by 25% 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 25%), what must be the balancing item? b. What will be the value of this balancing item? Balancing item Value