Chapter 18 Pre-Built Problems Saved Help Save & Exit Submit Check my work 3 Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. 10 points INCOME STATEMENT, 2019 Sales $1,100 Costs 210 Interest 90 Taxes 160 Net income 640 eBook 2019 Hin Assets BALANCE SHEET, YEAR-END 2018 2019 $ 3,100 $ 3,400 Debt Equity $ 3,100 $ 3,400 Total 2018 $ 1,300 1,800 3,100 $ 1,400 2,000 $ 3,400 Total Print References a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2020. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If Eagle chooses not to issue new shares of stock, what variable must be the balancing item? c. What will be the value of this balancing item? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Now suppose that the firm plans instead to increase long-term debt only to $1,500 and does not wish to issue any new shares of stock. What is now the balancing item? e. What will be the value of this new balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.) a. External funding need b. Balancing item c. Value d. Balancing item e. Value $ 372.80 Debt $ 372.80 Retained earnings $ 373