Elements Limited is attempting to project cash receipts and disbursements for the month of January and February 2016. Selected general balances on 31 December 2015 are as follows: Cash Inventory Accounts payable $176,000 $130,400 $272,000 Sales terms call for a 3% discount if payment is made within the month of sale. Experience has shown that 50% of the billings will be collected within the discount period, 30% in the following month, and 14% in 2-months' time after the month of invoice. The remaining 6% will be uncollectible. There are no cash sales. The average selling price of the company's products is $200 per unit. Actual and projected sales are as follows: November actual December actual January estimated February estimated March estimated Total estimated for year ending 30 June 2016 $560,000 $640,000 $660,000 $500,000 $480,000 $4,800,000 All purchases are payable within 15 days. Approximately 60% of the purchases for a given month are paid that month, and the rest are paid the following month. The average purchases cost is $160. Target ending inventories are 500 units plus 10% of the next month's unit sales. Required: (a) (b) Prepare schedules for cash collections of receivables and cash payments for merchandise for the month of January and February 2016. Explain briefly "budgetary slack" and its behavioural implications