The following data are information to assist in the preparation of a cash budget for the first quarter of 2020, Steam Co:

1. Januarys sales for 2020 is 8.000 units, selling price is $250 per unit. The quantity to be sold in following month 20% more than the previous month. The selling price is always increase by 10% each month. 30% of total sales is cash sales and the remaining is sales on account. Collection pattern for credit sales is 40% in the month of sales, 25% in the following month, and 28% in the second month following the sales. The credit term of sales 2/10,n/30.
2. Units sold in 2019 is 80% of total sales in next month. Unit selling price in 2019 is $200 per unit.
3. Each month, the ending inventory exactly equals 60% of the cost of next months sales. The markup on goods is 25% of cost.
4. Inventory purchases are paid for in the month following the purchase.
5. Recurring monthly expenses are as follows:

Salaries and wages expense $250.000

Depreciation on plant and equipment $125.000

Utilities expenses $85.000

Others $15.000

6. Property taxes of $122.000 are due and payable on February 15,2020.
7. Advertising fees of $128.000 must be paid each month.
8. Beginning cash balance per 1 January 2020 is $378.000.
9. The company has a policy to maintain a minimum cash balance of $1.000.000. if necessary, it will borrow to meet its short term needs. All borrowing is done at the beginning of the month. All payments on principal and interest are made at the end of a month. The annual interest rate is 12%. The company must borrow in multiples of $10.000.

Instructions:

1. Prepare a cash budget for January 2020.
2. Is there any budgetary slack when to prepare a cash budget?