Question 4 (8 Marks) Gregson Foundries Ltd. (GFL) has a fiscal year end of September 30 and its statements for 2019 and 2020 are below. The firm is anticipating an excellent year for 2021, forecasting sales to increase by 8% in 2021 to $59.13 million As the firm only has sufficient capacity for sales of up to $60 million, CAPEX for 2021 is expected to be $4 million. Fixed expenses are expected to increase by $1.000.000. Tobias Gregson, Founder and CEO, is planning to withdraw $5 million in dividends in 2021. Interest is 8% of the previous year's long term debt and Gregson has an option to make a principal payment on the debt of $4 million at the end of 2021, which they intend to exercise. The rate earned on marketable securities is so low at this time that it is being forecast at 0%. The marketable securities can only be bought and sold in multiples of $1 million and the line of credit is drawn in multiples of $1 million as well. As the firm is growing rapidly. Tobias has decided to change the target range for the cash balance to between $3 million and $4 million, and adjusting the marketable securities balance or drawing on their unused line of credit, as necessary. Depreciation, which is included in Fixed Expenses on the Income Statement, is 20% of the preceding year's Net Fixed Assets value plus 10% of the current year CAPEX. Required: Using the percentage of sales method, forecast GFL's working capital needs for 2021. Use "Cash", (and if necessary to keep cash within the specified target range, "Marketable Securities" and "Line of Credit") as the plug variable(s). For your convenience, if needed, you are provided the entire set of financial statements are provided, but only the unshaded working capital items will be marked. Place your forecast values in the boxes.