$ QUESTION 5 [20 MARKS] The table below gives information extracted from the annual financial statements of Management Plc for the past year. Management Plc-Extracts from annual accounts Inventories: raw materials 108,000 work in progress 75,600 finished goods 86,400 Purchases of raw materials 518,400 Cost of production 675,000 Cost of goods sold 756,000 Sales 864,000 Receivables 172,800 Payables 86,400 REQUIRED (a) Calculate the length of the working capital cycle for assuming 365 days in the year) [6 Marks] (b) Explain your understanding of: 'A company overtrading'. What are its causes and consequences, and what warning signals can be determined from an analysis of the profit and loss account and balance sheet? [6 Marks] (c) Ajmal Trading is a retailer of liquor barrels. The company has an annual demand of 30,000 barrels. The barrels are purchased for stock in lots of 5,000 and cost $12 each. Fresh supplies can be obtained immediately, ordering and transport costs amounting to $200 per order. The annual cost of holding one barrel in stock is estimated to be $1.20. Calculate the ordering costs and the annual holding costs if: 0 The order quantity is 5000 barrels [4 Marks) () The company adopts the EOQ as its order quantity. [4 Marks)