Problem $18-12$ Using Percentage of Sales $($LO$2)$

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

INCOME STATEMENT, $2022$

Sales $ $1,400$

Costs $270$

Interest $80$

Taxes $220$

Net income $ $830$

BALANCE SHEET, YEAR$-$END

$2021202220212022$

Assets $ $3,700$ $ $4,000$ Debt $ $1,000$ $ $1,100$

Equity $2,7002,900$

Total $ $3,700$ $ $4,000$ Total $ $3,700$ $ $4,000$

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.

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 $$1,200$ 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.