Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.

INCOME STATEMENT, 2017
Sales	$	1,650
Costs		320
Interest		60
Taxes		270
Net income	$	1,000

BALANCE SHEET, YEAR-END
	2016				2017					2016				2017
Assets	$	4,200			$	4,500			Debt	$	1,500			$	1,600
									Equity		2,700				2,900
Total	$	4,200			$	4,500			Total	$	4,200			$	4,500

a. Find Eagles required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2018. (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?

• Debt

• Interest

• Dividends

• Retained earnings

c. What will be the value of this balancing item? (Do not round intermediate calculations. Round your answer to 2 decimal places.)