Abbreviated financial statements for archimides levers are, Ask an Expert

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Abbreviated financial statements for Archimides Levers are shown in Table 19.12. If sales increase by 10% in 2011 and all other items, including debt, increase correspondingly, what must be the balancing item? What will be its value?

Income Statement
Sales $4,000
Costs, including interest 3,500
Net income $500
Balance Sheet, Year-end
2010 2009 2010 2009
Assets 3,200 2,700 Debt 1,200 1,033
Equity 2,000 1,667
Total 3,200 2,700 Total 3,200 2,700

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