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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 were 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

$120,000

39,000

81,100

12,000

193,000

119,900

45,500

60,000

*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, 2021, indicating how

much, if anything, Arrowroot will need to borrow to meet its minimum cash

requirement. (Leave no cells blank - be certain to enter "O" wherever required.)

ARROWROOT COMPANYCash Budget for July 31, 2021Total cash availble before current financingLess

disbursements:Total disbursementsExcess (deficiency) of cash available over

disbursementsFinancing:BorrowingsRepaymentsInterestTotalfinancing

2. Supposing the cash management policy at Arrowroot permits borrowing up

to $60,000 for the purpose of financial slack, how much will be borrowed?

Required: 1. Prepare a cash budget for the month ended July 31, 2021, indlcating how much, If anything. Arrowroot will need to borrow to meet its minimum cash requirement. (Leave no cells blank - be certoin to enter " 0 " wherever required.)

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