finance help CH 17 Morrissey technologies additional funds needed

Book Momssey Technologies Inc.'s 2021 financial statements are shown here. Morrissey Technologies Inc: Balance Sheet as of December 31, 2021 Cash $150,000 Accounts payable $360,000 Receivables 360,000 Notes payable 56,000 Inventories 720,000 Accrued liabilities 180,000 Total current assets $1,250,000 Total current ties 5596,000 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, 2021 Sales $3,600,000 Operating costs including 3,279,720 depreciation EDIT 5320,200 Interest 20,230 EBT $100,000 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 2022, sales increase by 15% over 2021 salesThe firm currently has 100,000 shares outstanding. It expects to maintain its 2021 vidend payout ratio and believes that its net should grow at the same rate as sales. The firm has no excess capacity. However, the would like to reduce its operating costs/es ratio to 87.5% and increase it to abities to assets ratio to 30%. (It believes its abilities-to-assets ratio currently is too low relative to the industry average) The firm will raise 10% of the 2022 forecasted interest-bearing debtas notes payable, and it will se long-term bonds for the remainder. The tum forecasts that its before tax cost of det (which includes both short and long-term debt) i 134 Asume that any common stock lesuances or repurchases can be made at 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 answers to the nearest Morrissey Technologies Inc. Pro Forma Income Statement December 31, 2022 2021 2022 Sales $3,600,000 5 4,320,000 Operating costs includes depreciation) 3,279,720 3,942,920 ESIT $320,280 $ 41,340 Interest expense 20,280 56,160 $300,000 5 527,040 Taxes (25%) 75,000 142,550 Net Income $225,000 $ 384,490 Dividends (60%) $ 140630 108000 Addition to retained earnings 93758 72000 Morrissey Technologies Inc. Pro Forma Balance Statement December 31, 2022 2021 2022 Assets Cash $180,000 207,000 Accounts receivable 360,000 414,000 Inventores 720,000 828,000 Fixed assets 1.440,000 1,656,000 Total assets $2,700,000 3,105,000 Labies and Equity Payables + accruals $540,000 Short-term bank loans 56,000 Total current oblities $596,000 $ Long term bonds 100,000 Total is 5896,000 $ Common stock 1.800.000 1.000.000 Retained earnings 204,000 Total common equity $2,000,000 $ Total liabilities and equity $2,700,000 $ 1. If the profit margin remains at 6.25 and the dividend payout ratio remains at, at what growth rate in sales will the additional financing requirements exactly tero? In other words, what is the firm's sustainable growth rate? (Hint: Set APN qal to zero and solve for :) De not roundermedate calculations. Round your answer to two decimal aces