Pro Forma Statements [LO1] Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Income Statement Balance Sheet
Sales $36,000 Assets 26,400 Debt 6,3000
Costs 29,800 Equity 20,100
Net Income 6,200 Total 26,4000 26,400
The company has predicted a sales increase of 15 percent. It has predicted that every item on the balance sheet will increase by 15 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?