The income statement allows cash shortfalls and cash surpluses to be predicted 

Cash budgeting is not required for not-for-profit sectors 

Accuracy is required when preparing budgets 

Cash budgets are not part of financial budgets 

The balance sheet budget is prepared after the preparation of the cash budget

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The controller of Optimum 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 were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44,000 83,600 13,000 198,000 122,400 47,000 70,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning 130,000 Total cash available before current financing 130,000 Less disbursements: Total disbursements Excess (deficiency) of cash available over disbursements 130,000 Financing: Borrowings Repayments Interest Total financing 2. Which of the following statement is true? (Click to select) The controller of Optimum 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 were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44,000 83,600 13,000 198,000 122,400 47,000 70,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning 130,000 Total cash available before current financing 130,000 Less disbursements: Total disbursements Excess (deficiency) of cash available over disbursements 130,000 Financing: Borrowings Repayments Interest Total financing 2. Which of the following statement is true? (Click to select) The controller of Optimum 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 were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44,000 83,600 13,000 198,000 122,400 47,000 70,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning 130,000 Total cash available before current financing 130,000 Less disbursements: Total disbursements Excess (deficiency) of cash available over disbursements 130,000 Financing: Borrowings Repayments Interest Total financing 2. Which of the following statement is true? (Click to select) The controller of Optimum 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 were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received $130,000 44,000 83,600 13,000 198,000 122,400 47,000 70,000 Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning 130,000 Total cash available before current financing 130,000 Less disbursements: Total disbursements Excess (deficiency) of cash available over disbursements 130,000 Financing: Borrowings Repayments Interest Total financing 2. Which of the following statement is true? (Click to select)

Answer rating: 100% (QA)

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