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

If sales increase by 20% in 2016 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? What will be its value?

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INCOME STATEMENT, 2015 Sales Cost Net income BALANCE SHEET, YEAR-END $2,000 1,500 $500 2014 $2,500 2015 $3,000 Debt Equity Total 2014 S833 1,667 $2,500 2015 $1,000 2,000 $3,000 Assets Total $2,500 S3,000