\begin{tabular}{|l|c|} \hline & A \\ \hline 1 & E7-7 - Preparing a Cash Budget \\ \hline \end{tabular} The controller of Arrowroot Company wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2022: June 30, 2022, cash balance Dividends to be declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Arrowroot Company wishes to maintain a minimum cash balance of \begin{tabular}{|r|} $90,000 \\ \hline 24,000 \\ 73,600 \\ \hline 9,000 \\ \hline 178,000 \\ \hline 112,400 \\ \hline 41,000 \\ \hline 30,000 \\ \hline \end{tabular} *Dividends are payable to shareholders of record on declaration date, 30 days after declaration Required: 1) Prepare a cash budget for the month ended July 31, 2022, indicating how much, if anything, Arrowroot will need to borrow to meet its minimum cash requirement. 2) Explain how cash budgeting can facilitate cash management at Arrowroot