Anthony plc. is a fashion retail company and the following financial information about this company is available : Current assets £5,000,000 Current liabilities £4,000,000 Total revenue £12,000,000 Net income £3,000,000 Days in inventory 30 days Days in receivables 42 days. Days in payables 45 days Total cash demand for next year £800,000 Fixed transaction cost £20 per trade Opportunity cost 10% per annum Assuming Baumol Model is considered to be the appropriate cash management model.i)Calculate the number of transactions Anthony plc. will need to make to replenish the cash balance to optimal level next year, and in light of the assumptions of Baumol Model and your calculation, briefly explain how the Baumol Model works on cash management for Anthony plc.

ii)Using the available information,calculate the current ratio, profit margin, operating cycle and cash cycle of Anthony plc.