1,200 paid on 1" March followed by 12 equal monthly instalments starting 1 April. The cash balance forecast at the beginning of April is 400. b) Alpha pic operates a retail business. Purchases are sold at cost plus 25%. The management team are preparing the cash budget and have gathered the following data: i) The budget sales are as follows: Month January February March April 90 100 80 120 ii) It is management policy to hold inventory at the end each month which is enough to meet the sales demand for the next half month. Sales are budgeted to occur evenly during each month. iii) Creditors are paid one month after the purchase has been made Calculate the entries for purchases that will be shown for February, March and April. (3 marks) c) "Managing costs is very important given the competitive environment in which modern businesses operate Discuss this statement including in your discussion some of the recent approaches to costing which have emerged to help businesses manage their costs. (13 marks)