EXERCISE 7-7 Preparing a Cash Budget [LO2 - CC12] 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, 2021: June 30, 2021, 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 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration, $ 90,000 24,000 73,600 9,000 178,000 112,400 41,000 30,000 Required: 1. Prepare a cash budget for the month ended July 31, 2021, indicating how much, if anything, Arrowroot will need to borrow to meet its minimum cash requirement.

Preparing a Cash Budget [LO2 - CC12] 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, 2021: June 30,2021 , cash balance $90,000 Dividends to be declared on June 15 24,000 Cash expenditures to be paid in July for operating expenses 73.600 Depreciation expense 9,000 Cash collections to be recerved 178,000 Merchandise purchases to be paid in cash 112,400 Equipment to be purchased for cash 41,000 Arrowroot Company wishes to maintain a minimum cash belance of 30,000 Required: 1. Prepare a cash budget for the month ended July 31, 2021, indicating how much, if anything. Arrowroot will need to borrow to meet its minimun cash requirement