am.321. The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume thatEagle's assets are proportional to its sales.Income StatementSalesCostsPretax incomeTaxes (at 30.0%)Net income$1,150350$ 800240560TotalBalance Sheet, Year-EndDebtEquity$3,200 $2,900 Total $3,20020192018Net assets $3,200 $2,900Answer is complete and correct.a. Find Eagle's required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in revenue,expenses, and assets in 2020. Assume the tax rate remains constant. (Do not round intermediate calculations. Round your answerto the nearest whole dollar amount.)External funds needed $ 3042019$1,1002,100b. If Eagle chooses not to issue new shares of stock, what is the value of debt in 2020? (Do not round intermediate calculations.Round your answer to the nearest whole dollar amount.)Answer is complete but not entirely correct.Value of debt s3042018$1,0001,900$2,900Answer is complete and correct.c. Suppose that the firm plans instead to increase long-term debt only to $1,250 and does not wish to issue any new shares of stock.What must be the 2020 dividend payment now? (Do not round intermediate calculations. Round your answer to the nearest wholedollar amount.)Dividends $ 182

The amount of debt accumulated over time offers information about an entity's capacity to handle…

Answered: Eagle's assets are proportional to its…

Eagle's assets are proportional to its sales. Income Statement Sales Costs Pretax income Taxes (at 30.0%) Net income $1,150 350 800 240 560

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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