Below are the 2017 financial statements for Great Technologies. For 2018 assume that: 1. Volume of sales units will increase by 10 percent. 2. Investment in fixed assets will be R10 million. 3. Cost of goods sold, accounts receivable, inventories and accounts payable will rise appropriately to sales. 4. Dividends will equal 30 percent of profit after tax. 5. General selling expenses, depreciation, tax rate, long-term debt, and common stock will not change. If GT wants to maintain a minimum cash balance of at least R5 million, how large a bank loan will be required at year-end 2018? (You may ignore any increases in interest expense). HINT: Forecast the 2018 I/S and B/S and solve for the LT Debt. Income Statement and Balance Sheet December 31, 2017 (R millions) Net sales 100 Cost of goods sold 60 Gross profit 40 General selling expenses 10 Depreciation 10 Interest expense 5 Profit before tax 15 Tax at 34% 5 Profit after tax 10 Dividends paid 3 Additions to retained earnings 7 Net Assets Net Fixed Assets 70 Accounts receivable 17 Inventories 23 Cash 10 Less accounts payable -8 Net Working Capital 42 Net Assets 112 Capital Employed Ordinary Shares 20 Retained earnings 20 Long-term debt 50 Bank Overdraft 22 Total liabilities and equity 112