1. Business Planning The management team at Galway Engineering Ltd. is looking forward to the three-month period ended 31 March 2022. Draft figures indicate the following balances at 1 January 2022: Trade Debtors Trade Creditors Bank 280,000 70,000 220,000 Sales and purchases on one month's credit are expected to be as follows: Sales Jan. 260,000 Feb. 330,000 Mar. 390,000 Purchases 100,000 150,000 180,000 New equipment will be purchased on 1 January 2022 for 240,000 and old equipment will be sold for its net book value of 55,000 on the same date. The wages bill is estimated to be 130,000 per month. Depreciation of equipment has been calculated at 4,000 per month. Payments to subcontractors will be 15% of sales and payable in the month of sale. Other overheads are estimated at 30,000 per month. Proposed dividends of 40,000 will be paid to shareholders in February. Required: (a) Prepare a cash budget for the three-month period ended 31 March 2022. (b) Calculate the profit for the three-month period. (15 marks) (15 marks) (c) Advise the management team at Galway Engineering Ltd. on the profitability and liquidity of the company in the three-month period. (10 marks)