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Problem 1 8 - 1 2 Using Percentage of Sales ( LO 2 ) Eagle Sports Supply has the following financial statements. Assume that Eagle

Problem 18-12 Using Percentage of Sales (LO2)
Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.
INCOME STATEMENT, 2022
Sales $ 1,650
Costs 320
Interest 60
Taxes 270
Net income $ 1,000
BALANCE SHEET, YEAR-END
2021202220212022
Assets $ 4,200 $ 4,500 Debt $ 1,500 $ 1,600
Equity 2,7002,900
Total $ 4,200 $ 4,500 Total $ 4,200 $ 4,500
Find Eagles required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2023.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?
What will be the value of this balancing item?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Now suppose that the firm plans instead to increase long-term debt only to $1,700 and does not wish to issue any new shares of stock. What is now the balancing item?
What will be the value of this new balancing item?
Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

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