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 %