Forecasting Financial StatementsCommon stock price$45 00Earnings per share 2021 $2 40Dividends per share 2021 $1 92Growth rate of sales14 Common stock outstanding 2021 100,000Operating costs sales ratio 2021 86 5 Total liabilities to assets ratio 2021 35 Proportion of short term interest bearing debt 2021 20 Tax rate25 Before tax cost of debt13 50 a Constructing the forecasted financial statements (Parts II , III , and IV )Part II Income Statements20212022FormulasSales$3,840,000 00 N AOperating costs including depreciation3,493,596 00 N AEarnings before interest and taxes (EBIT)$346,404 00 N AInterest26,404 00 N AEarnings before taxes (EBT)$320,000 00 N ATaxes 80,000 00 N ANet income (NI)$240,000 00 N ADividends N AAddition to retained earnings N APart III Balance Sheets20212022AssetsCash$192,000 00 N AReceivables384,000 00 N AInventories768,000 00 N ATotal current assets$1,344,000 00 N AFixed assets1,536,000 00 N ATotal assets$2,880,000 00 N ALiabilities and EquityAccounts payable$384,000 00 N AAccrued liabilities192,000 00 N ANotes payable62,600 00 N ATotal current liabilities$638,600 00 N ALong term debt126,000 00 N ATotal liabilities$764,600 00 N ACommon stock1,920,000 00 N ARetained earnings195,400 00 N ATotal common equity$2,115,400 00 N ATotal liabilities and equity$2,880,000 00 N APart V Notes on CalculationsTotal liabilities N ALess Payables and accruals N AInterest bearing debt N AAllocated to notes payable N AAllocated to long term bonds N AInterest expense N ATarget equity to assets ratio N ARequired total equity N ARetained earnings N ARequired common stock N Ab Calculating the growth rate in sales at which the additional financing requirements will be exactly zeroProfit margin6 25 Dividend payout ratio80 FormulasAddition to retained earnings 2021 N AGrowth rate in sales N A Construct the forecasted financial statements assuming that these changes are made What are the firm's forecasted notes payable and long term debt balances What is the forecasted addition to retained earnings Round your answers to the nearest cent Morrissey Technologies Inc Pro Forma Income Statement for December 31, 2022 Sales$ fill in the blank 2Operating costs including depreciationfill in the blank 3Earnings before interest and taxes (EBIT)$ fill in the blank 4Interestfill in the blank 5Earnings before taxes (EBT)$ fill in the blank 6Taxes (25 )fill in the blank 7Net income (NI)$ fill in the blank 8Dividends$ fill in the blank 9Addition to retained earnings$ fill in the blank 10 Morrissey Technologies Inc Pro Forma Balance Sheet as of December 31, 2022 Assets Cash$ fill in the blank 11Receivablesfill in the blank 12Inventoriesfill in the blank 13Total current assets$ fill in the blank 14Fixed assetsfill in the blank 15Total assets$ fill in the blank 16 Liabilities and Equity Accounts payable$ fill in the blank 17Accrued liabilitiesfill in the blank 18Notes payablefill in the blank 19Total current liabilities$ fill in the blank 20Long term debtfill in the blank 21Total liabilities$ fill in the blank 22Common stockfill in the blank 23Retained earningsfill in the blank 24Total common equity$ fill in the blank 25Total liabilities and equity$ fill in the blank 26 If the profit margin remains at 6 25 and the dividend payout ratio remains at 80 , 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 g ) Round your answer to two decimal places fill in the blank 27

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Forecasting Financial StatementsCommon stock price$45.00Earnings per share 2021 $2.40Dividends per share 2021 $1.92Growth rate of sales14%Common stock outstanding 2021 100,000Operating costs/sales ratio 2021 86.5%Total liabilities-to-assets

Forecasting Financial StatementsCommon stock price$45.00Earnings per share₂₀₂₁$2.40Dividends per share₂₀₂₁$1.92Growth rate of sales14%Common stock outstanding₂₀₂₁100,000Operating costs/sales ratio₂₀₂₁86.5%Total liabilities-to-assets ratio₂₀₂₁35%Proportion of short-term interest-bearing debt₂₀₂₁20%Tax rate25%Before-tax cost of debt13.50%a. Constructing the forecasted financial statements (Parts II., III., and IV.)Part II. Income Statements20212022FormulasSales$3,840,000.00#N/AOperating costs including depreciation3,493,596.00#N/AEarnings before interest and taxes (EBIT)$346,404.00#N/AInterest26,404.00#N/AEarnings before taxes (EBT)$320,000.00#N/ATaxes 80,000.00#N/ANet income (NI)$240,000.00#N/ADividends#N/AAddition to retained earnings#N/APart III. Balance Sheets20212022AssetsCash$192,000.00#N/AReceivables384,000.00#N/AInventories768,000.00#N/ATotal current assets$1,344,000.00#N/AFixed assets1,536,000.00#N/ATotal assets$2,880,000.00#N/ALiabilities and EquityAccounts payable$384,000.00#N/AAccrued liabilities192,000.00#N/ANotes payable62,600.00#N/ATotal current liabilities$638,600.00#N/ALong-term debt126,000.00#N/ATotal liabilities$764,600.00#N/ACommon stock1,920,000.00#N/ARetained earnings195,400.00#N/ATotal common equity$2,115,400.00#N/ATotal liabilities and equity$2,880,000.00#N/APart V. Notes on CalculationsTotal liabilities#N/ALess: Payables and accruals#N/AInterest-bearing debt#N/AAllocated to notes payable#N/AAllocated to long-term bonds#N/AInterest expense#N/ATarget equity-to-assets ratio#N/ARequired total equity#N/ARetained earnings#N/ARequired common stock#N/Ab. Calculating the growth rate in sales at which the additional financing requirements will be exactly zeroProfit margin6.25%Dividend payout ratio80%FormulasAddition to retained earnings₂₀₂₁#N/AGrowth rate in sales#N/A

Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and long-term debt balances? What is the forecasted addition to retained earnings? Round your answers to the nearest cent.

Morrissey Technologies Inc.: Pro Forma Income Statement for December 31, 2022Sales$ fill in the blank 2Operating costs including depreciationfill in the blank 3Earnings before interest and taxes (EBIT)$ fill in the blank 4Interestfill in the blank 5Earnings before taxes (EBT)$ fill in the blank 6Taxes (25%)fill in the blank 7Net income (NI)$ fill in the blank 8Dividends$ fill in the blank 9Addition to retained earnings$ fill in the blank 10Morrissey Technologies Inc.: Pro Forma Balance Sheet as of December 31, 2022AssetsCash$ fill in the blank 11Receivablesfill in the blank 12Inventoriesfill in the blank 13Total current assets$ fill in the blank 14Fixed assetsfill in the blank 15Total assets$ fill in the blank 16Liabilities and EquityAccounts payable$ fill in the blank 17Accrued liabilitiesfill in the blank 18Notes payablefill in the blank 19Total current liabilities$ fill in the blank 20Long-term debtfill in the blank 21Total liabilities$ fill in the blank 22Common stockfill in the blank 23Retained earningsfill in the blank 24Total common equity$ fill in the blank 25Total liabilities and equity$ fill in the blank 26

If the profit margin remains at 6.25% and the dividend payout ratio remains at 80%, 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 g.) Round your answer to two decimal places.

fill in the blank 27 %