ecasting Financial Statements Morrissey Technologies Inc.'s 2021 financial statements are shown here. Morrissey Technologies Inc.: Balance Sheet as of December 31, 2021 Cash $ 320,000 Accounts payable $640,000 Receivables 640,000 Accrued liabilities 320,000 Inventories 1,280,000 Notes payable 95,000 Total current assets $2,240,000 Total current liabilities $1,055,000 Long-term debt 180,000 Fixed assets 2,560,000 Common stock 3,200,000 Retained earnings 365,000 Total assets $4,800,000 Total liabilities and equity i $4,800,000 Morrissey Technologies Inc.: Income Statement for December 31, 2021 Sales Operating costs including depreciation $6,400,000 6,041,500 EBIT Interest EST Taxes (25%) Net income Per share data: Common stock price Earnings per share (EPS) Dividends per share (DPS) $ 358,500 38,500 $ 320,000 80,000 $ 240,000 $75.00 $2.40 $1.44 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 91.5% and increase its total Rabilities-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 40% 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 13.5%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $75.