Morrissey Technologies Inc.: Income Statement for December 31, 2016 Sales Operating costs including depreciation EBIT Interest EBT Taxes (40%) Net Income Per Share Data: Common stock price Earnings per share (EPS) Dividends per share (DPS) $3,600,000 3,279,720 $320,280 20,280 $300,000 120,000 $180,000 $45.00 $1.80 $1.08 Suppose that in 2017, sales increase by 20% over 2016 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2016 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 90% and increase its total liabilities-to-assets ratio to 30%. (It believes its liabilities-to-assets ratio currently is too low relative to the industry average.) The firm will raise 30% of the 2017 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 13%. Assume that any common stock issuances or 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 debt balances? What is the forecasted addition to retained earnings? Round your answers to the nearest cent