The Financial Controller of Animus Ltd is in the process of preparing applying for an overdraft facility to accommodate anticipated temporary shortfalls in cash over the coming quarter. She has amassed the following information: 2017 2018 Nov Dec Jan Feb Mar Apr May June Sales $70 000 $75 000 $80 000 $110 $120 $150 $145 $155 000 000 000 000 000 $70 000 Purchases $48 000 $50 000 $55 000 $85 000 $110 $100 $115 000 000 000 i. Sales are 45% cash and 55% credit. Credit sales are collected two months following sale. ii. Purchases are paid 70% in the month of purchase and the balance in the month after purchase. iii. Wages in December amounted to $18 000 monthly, however the company has recently concluded negotiations with the unions representing the workers and effective February 1, wages will increase by 15%. iv. Monthly overheads amount to $20 000. This includes depreciation of $2 000. V. The company declared a $35 000 cash dividend in December. It is scheduled for payment two months after declaration. vi. As part of a the thrust to modernize, new equipment is to be acquired in March at a cost of $150 000. This is to be paid in three equal instalments in April, May and June. Old machinery will be disposed of in April, realizing $20 000. vii. At December 31, 2017, Animus had a cash balance of $70 000. The company maintains a minimum cash balance of $12 000. Required: A. Prepare the following for the four-month period January - April i. The schedule of cash collections (4 marks) ii. Schedule of cash payments iii. Cash budget (4 marks) (14 marks) B. Other than the overdraft, identify TWO (2) measures that Animus Ltd could take to deal with temporary cash shortages. Briefly discuss the advantages and disadvantages of using overdraft financing and the other two measures identified. (8 marks) Total 30 marks