Question 4 15 Points (a) For the current year, Anchor Ltd. had net sales of $525,000 and paid $278,000 for the cost of goods sold. They had average receivables of $145,000, average payables of $78,000, and an average inventory of $98,000. Calculate the Operating cycle and Cash cycle for Anchor Ltd. Interpret the results. (7 points) (b) Prepare a Cash Budget based on the info below for the year 2021 for the months of January, February, March, and April. (8 points) - Anchor Ltd., anticipates sales of $21,000 in January 2021, with anticipated growth of 12% per month. - Credit sales are paid 60% the same month and 40% the following month (credit sales for December 2020 were $17,000) - Credit purchases are paid 42% of sales; paid in the month they are incurred -Wages and expenses are 35% of sales every month; paid in the month they are incurred -In February 2021, the company pays $15,000 and in April 2021 the company pays $12,000; both are paid in cash for equipment purchase -The beginning cash balance is $27,000 Use the editor to format your answer