Evertono plc. is a fashion retail company and the following financial information about this company is available: Current assets Current liabilities Total revenue Net income Days in inventory Days in receivables Days in payables Total cash demand for next year Fixed transaction cost Opportunity cost 5,000,000 4,000,000 12,000,000 3,000,000 30 days 42 days 45 days 800,000 20 per trade 10% per annum Assuming Baumol Model is considered to be the appropriate cash management model. Calculate the number of transactions Evertono plc. will need to make to replenish the cash balance to optimal level next year, and in light of the assumptions of Baumol Model and your calculation, briefly explain how the Baumol Model works on cash management for Evertono plc. [12 marks] Using the available information, calculate the current ratio, profit margin, operating cycle and cash cycle of Evertono plc. End of Paper - An appendix of 2 pages follows ALIENWARE [8 marks] [Total 20 marks]