Morrissey Technologies Inc.'s 2019 financial statements areshown here. Morrissey Technologies Inc.: Balance Sheet as ofDecember 31, 2019 Cash $180,000 Accounts payable $360,000Receivables 360,000 Notes payable 56,000 Inventories 720,000Accrued liabilities 180,000 Total current assets $1,260,000 Totalcurrent liabilities $596,000 Long-term debt 100,000 Fixed assets1,440,000 Common stock 1,800,000 Retained earnings 204,000 Totalassets $2,700,000 Total liabilities and equity $2,700,000 MorrisseyTechnologies Inc.: Income Statement for December 31, 2019 Sales$3,600,000 Operating costs including depreciation 3,279,720 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 pershare (EPS) $2.25 Dividends per share (DPS) $1.35 Suppose that in2020, sales increase by 20% over 2019 sales. The firm currently has100,000 shares outstanding. It expects to maintain its 2019dividend payout ratio and believes that its assets should grow atthe same rate as sales. The firm has no excess capacity. However,the firm would like to reduce its operating costs/sales ratio to90% and increase its total liabilities-to-assets ratio to 30%. (Itbelieves its liabilities-to-assets ratio currently is too lowrelative to the industry average.) The firm will raise 30% of the2020 forecasted interest-bearing debt as notes payable, and it willissue long-term bonds for the remainder. The firm forecasts thatits before-tax cost of debt (which includes both short- andlong-term debt) is 12%. Assume that any common stock issuances orrepurchases can be made at the firm's current stock price of $45.Construct the forecasted financial statements assuming that thesechanges are made. What are the firm's forecasted notes payable andlong-term debt balances? What is the forecasted addition toretained earnings? Do not round intermediate calculations. Roundyour answers to the nearest cent. Morrissey Technologies Inc. ProForma Income Statement December 31, 2020 2019 2020 Sales $3,600,000$ 4320000 Operating costs (includes depreciation) 3,279,720 3888000EBIT $320,280 $ 432000 Interest expense 20,280 61920 EBT $300,000 $Taxes (25%) 75,000 Net Income $225,000 $ Dividends (60%) $ $Addition to retained earnings $ $ Morrissey Technologies Inc. ProForma Balance Statement December 31, 2020 2019 2020 Assets Cash$180,000 $ Accounts receivable 360,000 Inventories 720,000 Fixedassets 1,440,000 Total assets $2,700,000 $ Liabilities and EquityPayables + accruals $540,000 $ Short-term bank loans 56,000 Totalcurrent liabilities $596,000 $ Long-term bonds 100,000 Totalliabilities $696,000 $ Common stock 1,800,000 Retained earnings204,000 Total common equity $2,004,000 $ Total liabilities andequity $2,700,000 $ If the profit margin remains at 6.25% and thedividend payout ratio remains at 60%, at what growth rate in saleswill the additional financing requirements be exactly zero? Inother words, what is the firm's sustainable growth rate? (Hint: SetAFN equal to zero and solve for g.) Do not round intermediatecalculations. Round your answer to two decimal places.