a. conduct the forcasted financial statments that these changes are made. What are the firms forcasted notes payable and long-term debt balances? What is the forcasted addition to retained earnings? Round your answers to the nearest cent.

b. If the profit margin remains at 7.50% and the divident payout ratio remains at 40%, at what growth rate in sales will tge additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (hint: set AFN equal to zero and solve for g) Round your answer to two decimal places

Morrissey Technologies Inc.'s 2021 financial statements are shown here. Morrissev Technolodies Inc.: Balance Sheet as of December 31, 2021 Morrissev Technolodies Inc.t Income Statement for December 31. 2021 stock price of 144. Mnrricenv Tochnnlnniac Tne.t Dro Forma Tncome Statamant for Dacamber 31.2022. Morrissev Technoloales Inc.: Pro Forma Blance Sheet as of December 31.2022 Suppose that in 2022 , sales increase by 12% over 2021 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2021 dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would like to reduce its operating costs/sales ratio to 85.5% and increase its total liabliities-to-assets ratio to 35%. (It belleves its liabilities-to-assets ratio currently is too low relative to the industry average.) The firm will raise 20% of the 2022 forecasted interest-bearing debt as notes payable, and it will issue long-term bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 11.5\%. Assume that any cornmon stock issuances or repurchases can be made at the firm's current stock price of $44. Morrissey Technologies Inc.'s 2021 financial statements are shown here. Morrissev Technolodies Inc.: Balance Sheet as of December 31, 2021 Morrissev Technolodies Inc.t Income Statement for December 31. 2021 stock price of 144. Mnrricenv Tochnnlnniac Tne.t Dro Forma Tncome Statamant for Dacamber 31.2022. Morrissev Technoloales Inc.: Pro Forma Blance Sheet as of December 31.2022 Suppose that in 2022 , sales increase by 12% over 2021 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2021 dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would like to reduce its operating costs/sales ratio to 85.5% and increase its total liabliities-to-assets ratio to 35%. (It belleves its liabilities-to-assets ratio currently is too low relative to the industry average.) The firm will raise 20% of the 2022 forecasted interest-bearing debt as notes payable, and it will issue long-term bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 11.5\%. Assume that any cornmon stock issuances or repurchases can be made at the firm's current stock price of $44