Alpha Ltd is preparing its monthly cash budgets for the next quarter, January to March 2023. The following information is available: - All sales are on credit: 30% of customers are expected to pay in the month after the sale; 68% of customers are expected to pay in the second month after the sale; 2% of customers invoices are never paid. - Payments to suppliers of materials are usually made by Alpha in the second month after the purchase. However, in March 2023 Alpha will trade with Peggy, a new supplier who offered a 3% settlement discount for payment within 7 days. On 23rd March 2023 Peggy will issue an invoice for 10,000 which Alpha will pay on 27th March 2023 , taking advantage of the discount. - Other expenses are 10,000 for the month of December. Other expenses are expected to increase at a rate of 0.5% per month. Other expenses are paid in the following month. - The cash balance at the end of December 2022 is forecast to be 5,000. Required: a) Prepare cash budgets for each of the three months January to March 2023, showing clearly the cash inflows and outflows and the forecast cash position for each month. (23 marks) b) Based on the cash budgets which you have prepared, how would you advise Alpha's management? (6 marks) c) Alpha is considering whether it can replace two motor vehicles in the summer of 2023. One vehicle is a car used by the firm's sales team and the estimated cost is 10,000; the other vehicle is a delivery van with an estimated cost of 18,000. Based on the cash budgets which you have prepared, how would you advise Alpha's management