eBook Morrissey Technologies inc.'s 2019 financial statements are shown here. Morrissey Technologies Inc.: Balance Sheet as of December 31, 2019 Cash $180.000 Accounts payable $360,000 Receivables 360.000 Notes payable 56,000 Inventories 720,000 Accrued liabilities 180,000 Total current assets $1,260,000 Total current liabilities 5596,000 Long-term debit 100,000 Fixed assets 1440,000 Common stock 1,800,000 Retained earnings 204 000 Total assets $2,700,000 Total liabilities and $2,700,000 equity Morrissey Technologies Inc.: Income Statement for December 31, 2019 Sales $3,600,000 Operating costs including 3,279,720 depreciation EBIT $320,280 Interest 20,280 EBT $300,000 Taxes (259 75,000 Net Income $225,000 Per Share Date: Common stock price 545.00 Earnings per stare (EPS $2.25 Dividends per share (DPS) $1.35 Suppose that in 2020, sales increase by 15% over 2009 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2019 dividend payoutatio and believes that its assets should grow at the same rate as sales. The firm has to excess capacity. However, the fire would like to reduce its operating costs/sales ratio lo 87% and increase its Lotal liabilities-lo-assets ratio to 30% (Il believes its abilities ossets alloween Louw relative to the industry average.) The firm will raise 30% of the 2020 forecasted interest-bearing debt as notes payable, and it will issue long-term bonds for the remainder. The firm forecasts that its before-lax cost of debt which includes boulot and long term debt) is 13%. Assume that any conanen stock issuances on repurchases can be made at the firm's current stock price of $45. a. Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and long-term debit balances wine rolecasted addition to retained earnings? Do not reund intermediate calculations. Round your answers to the nearest cent. HOTT THL Puyalle and long-term debt balances? What is the forecasted addition to retained earnings? Do not round intermediate calculations. Round your Morrissey Technologies Inc. Pro Forma Income Statement December 31, 2020 2019 2020 Sales $3,600,000 $ Operating costs Kindudes depreciation 3279,720 3,601,00 EDIT $320.280 538,200 Interest expense 20,280 4,140,000 g EGT $300,000 23 Taxes 2560 75.000 Net Thcom 225.000 Dividends (50) Addition to retained warning 3 Morrissey Technologies Inc. Pro Forma Balance Statement December 31, 2020 2019 2029 ANCH Cash $180,000 Accounts receivable 360,000 Inventaries 220,000 Fixed asset 1/440,000 Total assets $2.700,000 $ Lomnes and Payables + accruals $540,000 5 Short-term bank loans 56,000 Total current liabilities $595,000 $ W Long-term bonds 100,000 Total liabilities $ $696,000 $ DOSS 6 6 6 6 cumnon stock 1,800,000 Retained earnings 204,000 Total common equity $2,004,000 $ Total liabilities and equity $2,700,000 $ b. If the profit margin remains at 6.25% and the dividend payout ratio remains at 60%, at what growth rate in sales will the 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 9.) Do not round intermediate calculations. Round your answer to two decimal places