INFORMATION The current annual sales of Westend Limited are R2 000 000, of which 75% is on credit. The debtors represent an average of 45 days sales. Westend Limited is experiencing a cash flow problem and management is considering factoring the company's debtors. A factor, GH Financiers, has offered the following deal Service charge of 4% of credit sales: 1 Use the information provided below to calculate the annual net cost of factoring to Westend (5 marks) Limited. 1 1 W Finance charge of 16% of outstanding debtors; Retention of 20% to be held by the factor, 4% expected bad debts vested in GH Financiers. The service agreement is expected to save Westend Limited costs amounting to R1 500 per month