<135 of 344 > 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 Required: Aa 9.000 178,000 112,400 41,000 30,000 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. 2. Supposing the cash management policy at Arrowroot permits borrowing up to $30,000 for the purpose of financial slack, how much will be borrowed? Contrast your answer to the one obtained in Requirement (1). 3. Explain how cash budgeting can facilitate cash management at Arrowroot. EXERCISE 7-8