I have answered A, I only need help with B

1-Suppose that in 2017, sales increase by 20% over 2016 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2015 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% and increase its total liabilities-to-assets ratio to 40%. (It believes its liabilities-to-assets ratio currentiy is too low relative to the industry average.) The firm will raise 40% of the 2016 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- term and long-term debt) is 15%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $45 ADDITIONAL FUNDS NEEDED Morrissey Technologies Inc.'s 2016 financial statements are shown here Morrissey Technologies Inc.: Balance Sheet as of December 31, 2016 $ 360,000 180,000 180,000 Aounts payable Receivables Accrued liabilities Notes payable Total current liabiites Long-term debt 720, 000 Total current assets $1,260,000 $ 5% 100,000 1,800,000 204,000 0.1k) 440000 Common stock Fixed assets Retained Total liabil tis and equity $20 earning Total assets 700,000 Morrissey Technologies Inc.: Income Statement for December 31, 2016 Sales Operating costs including depreciation EBIT Interest $3,600,000 327972 S 320,280 SAE Taxes (40%) Net Income s 300,000 120,000 $ 180,000 Per Share Data: Common stock price Earnings per share (EPS) Dividends per share (DES) $45.00 $ 1.80 $ 1.08 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? b.lf the profit margin remains at 5% and the dividend payout ratio remains at 65%, 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