The Grainger Company's budgeted income statement reflects the following amounts:

\begin{array} { | l | c | c | c | c | c | } \hline & \text { Sales } & & \text { Purchases } & & \text { Expenses } \\\hline \text { January } & \$ 120,000 & & \$ 78,000 & & \$ 24,000 \\\hline \text { February } & 110,000 & & 66,000 & & 24,200 \\\hline \text { March } & 125,000 & & 81,250 & & 27,000 \\\hline \text { April } & 130,000 & & 84,500 & & 28,600 \\\hline\end{array}

Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Grainger pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1: Cash $88,000; Accounts Receivable $58,000; Accounts Payable $72,000. Of the accounts receivable balance, $35,000 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $5,000 of depreciation. All expenses are paid in the month incurred.
Grainger's budgeted cash payments in February are:
A)$75,660.
B)$94,860.
C)$97,200.
D)$99,860.
E)$102,200.

If a Manager Builds Slack into a Budget, How Would

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