Maria Limited is a wholesale business. Extracts from the business's recent financial statements are as follows:

Income Statement
Sales	930
Cost of sales	640
Gross profit	290
Operating expenses	130
Operating profit	160
Interest	16
Profit before tax	144
Tax	40
Net profit	104
Balance Sheet
Current assets
Inventory		200
AR		240
		440
Fixed assets	860
Accumulated depreciation	340	520
Total assets		960
Current liabilities
AP		240
Overdraft		110
		350
Equity
Share capital		210
Retained earnings		400
		610
Total L&E		960

Opening inventory was 180.

Use the Maria Ltd financial information and consider the following assumptions to answer the questions:

• Suppliers have been pressing for payment, so the financing director has decided to reduce the level of accounts payable to an average of 50 days outstanding.
• To achieve this, she has decided to ask the bank to increase the overdraft to finance the necessary payments.
• The bank currently charges 10% interest on the overdraft.

Required:

[i] Calculate the amount of finance required to reduce accounts payable, as shown on the statement of financial position, to an average of 50 days outstanding.

[ii] Evaluate three short term financing options that Maria can use to manage working capital.

[iii] Recommend an option to Maria and justify your recommendation.