The controller of Arrowroot Company wishes to improve the companys control system by preparing a...
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Accounting
The controller of Arrowroot Company wishes to improve the companys control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021:
June 30, 2021, cash balance
$
116,000
Dividends were declared on June 15*
37,000
Cash expenditures to be paid in July for operating expenses
80,100
Depreciation expense
11,600
Cash collections to be received
191,000
Merchandise purchases to be paid in cash
118,900
Equipment to be purchased for cash
44,900
Arrowroot Company wishes to maintain a minimum cash balance of
56,000
*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 "0" wherever required.)
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