You have been asked to prepare a cash budget for PERSCOBA Ltd for the month of January 2018. The following information is available about the company's operation: (a) The cash balance on 1st January will be GH40,000. (b) Actual sales for November and December and expected sales for January are as follows: November December January Cash sales GH65,000 GH70,000 GH83,000 Sales on account GH400,000 GH525,000 GH600,000 Sales on account are collected over a three-month period in the following ratio: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. (c) Purchases of inventory will total GH280,000 for January. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from December's inventory purchases total GH161,000, all of which will be paid in January. (d) Selling and administrative expenses are budgeted at GH430,000 for January. Of this amount, GH50,000 is for depreciation. All cash selling and administrative expenses are paid in the month in which they are incurred. (e) A new web server for the Marketing Department costing GH76,000 will be purchased for cash during January. (f) Dividends totalling GH9,000 will be paid during the month. (g) The company must maintain a minimum cash balance of GH20,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Required: i) Make a schedule of expected cash collections for January. ii) Make a schedule of expected cash disbursements for materials during January to suppliers for inventory purchases. iii) Make a cash budget for January 2018. Indicate in the financing section any borrowing that will be needed during the month. iv) Explain the concepts of budgetary slack and responsibility accounting and how firms an avoid budgetary slack in budgeting