lafferty ranch has predicted a sales increase of 10 percent it has predicted that ev 556278

Pro Forma Statements Consider the following simplified financial statements for the Lafferty Ranch Corporation (assuming no income taxes):

Income Statement

Balance Sheet

Sales

$15,000

Assets

$4,300

Debt

$2,800

Costs

11,000

Equity

1,500

Net income

$ 4,000

Total

$4,300

Total

$4,300

Lafferty Ranch has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here?

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