Morrissey Technologies Inc.'s 2019 financial statements are shown here. Morrissey Technologies Inc.: Balance Sheet as of December 31, 2019 Cash $180,000 Accounts payable $360,000 Receivables 360,000 Notes payable 56,000 Inventories 720,000 Accrued liabilities 180,000 Total current assets $1,260,000 Total current liabilities $596,000 Long-term debt 100,000 Fixed assets 1,440,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and $2,700,000 equity Morrissey Technologies Inc.: Income Statement for December 31, 2019 Sales $3,600,000 Operating costs including 3,279,720 depreciation EBIT $320,280 Interest 20,280 EBT $300,000 Taxes (25%) 75,000 Net Income $225,000 Per Share Data: Common stock price $45.00 Earnings per share (EPS) $2.25 Dividends per share (DPS) $1.35 Suppose that in 2020. sales increase by 15% over 2019 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2013 dividend payout ratio and beves that it was hould grow at the same rate sales. The firm has no excess capacity. However, the form would like to reduce its operating costs/sales retieto 68.5% and increase its total abilities-to-assets ratio to 30%. (It believes its abilities to strato currently is too low relative to the industry average.) The firm will take 30% of the 2020 forecasted interest-bearing debtas notes payable, and it will e long-term bonds for the remainder. The firm forecasts that its before tax cost of debt (which includes both short and long term de) 12. Acume that any common stock issues or repurchases can be made the firm's current stock price of $45. . 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? Do not round intermediate calculations. Round your a s to the newest cent, Morris Technologies Inc. Pre Forma Income Statement December 31, 2020 Sales Operating costs (includes depreciation) $3,600,000 3.279.720 ERIT $320D Interestepense EBT Taxes (254) at Income Dividends (504) Addition to retained earnings Morrissey Technologies Inc. Pro Forme Balance Statement December 31, 2020 2012 Assets Cash $100,000 Accounts receivable 360,000 Trentories 720,000 Fixed assets 1.440.000 Total assets $2,700,000 Liabilities and Equity Payables + actuals $540,000 Short-term bank loans Total current abilities $596,000 Long-term bonds 100.000 Total abilities 6 .000 Common stock 1,000,000 Retained earnings 204.000 Totalcommon equity $2.004.000 Total liabilities and equity $2.700.000 b. If the profit margin remains at 6.25 and the dividend payout ratio remains at 60%, what growth rate in sales will the additional financing requirements be exactly wo? In other words, what is the firm's sustainable growth rate (Hint: Set AFN equal to zero and solve for .) Do not round intermediate calculations. Round your answer to two decimal places