Morrissey Technologies Incit Income Statement for December 31, 2021 Suppose that in 2022 , sales increase by 12% over 2021 sales. The firm currentiy has 100,000 shares outstanding. It expects to maintain its 2021 dividend oavout ratio and believes that its assets should arow at the same rate as sales. The firm has no excoss capacitv. However, the firm would Iike to reduce its. 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 88.5% 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 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 11.5\%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $39. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Download spreadsheet Forecasting Financial Statements-164a39.xlsx 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 Balance Sheet as of December 31, 2022 b. If the profit margin remains at 6.25% and the dividend payout ratio remains at 40%, 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