Here are the abbreviated financial statements for Planner’s Peanuts:

INCOME STATEMENT, 2022
Sales $ 2,000
Cost 1,500
Net income $ 500
BALANCE SHEET, YEAR-END
2021 2022 2021 2022
Assets $ 2,500 $ 3,000 Debt $ 833 $ 1,000
Equity 1,667 2,000
Total $ 2,500 $ 3,000 Total $ 2,500 $ 3,000
a.) If sales increase by 20% in 2023 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 20%), what must be the balancing item?
b.) What will be the value of this balancing item?