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Instructions Prepare a cash budget for the first quarter. E9.16 (LO 4), AN The controller of Trenshaw Company wants to improve the company's control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2020. onth June 30, 2020, cash balance Dividends to be declared on July 15 Cash expenditures to be paid in July for operating expenses Amortization expense in July Cash collections to be received in July Merchandise purchases to be paid in cash in July Equipment to be purchased for cash in July $45,000 12,000 40,800 4,500 90,000 56,200 20,000 Dividends are payable 30 days after declaration to shareholders of record on the declaration date Trenshaw Company wants to keep a minimum cash balance of $25,000. Instructions a. Prepare a cash budget for the month ended July 31, 2020, and indicate how much money, if any Trenshaw Company will need to borrow to meet its minimum cash requirement. b. Explain how cash budgeting can reduce the cost of short-term borrowing. (CGA adapted)