I submitted this request yesterday. The answers for (a., c., & e.) were incorrect according to my system results. I'm unsure where the expert got 15% and 30%. Below is there answer. The correct answer for (a.) is $373.76. I still need (c. & e.).

a. "Required External Funds = Asset increase - Addition to retained earnings

Required External Funds = 3400 * 15% - 640 * 30%

Required External Funds = $318"

c. "Value of Balancing Item = External Funds Required = $318"

e. "Value of New balancing Item = (Asset Increase - $100 from debt increase) = $705 - 100 = $605"

***********************************************************************************************************************************

*These are notes from my system. "In question one, first compute 2023 net income, then increase in retained earnings (i.e., difference between increased net income and dividend payout), increase in assets, and finally the difference between increase in in assets and increase in retained earnings is the external financing needed. Once you do that the rest of the problem is easier."

a) The projected net income for 202 is an increase of 20%, same percentage as increase in Sales (therefore this method is Sales method)

The retained earnings are what is left after distribution of dividends, using the same dividend percentage as previous year (60% for dividends)

The increase in assets is based on same 20% as Sales again (Sales method)

The financing of increased assets is partially done with retained earnings and the rest is external financing needed

c) From above the amount of debt needed is the 'balancing item'

e) The equity at the end of 2023 is the total of new assets minus the new total debt (i.e., increased by $100).

From this you can compare the old equity to the new equity and calculate the increase in equity"

**************************************************************************************************************************************************

Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2023 . Note: 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? Note: 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? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2023 . Note: 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? Note: 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? Note: Do not round intermediate calculations. Round your answer to the nearest whole number