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The controller of Arrowroot Company wishes to improve the company's control systemm by preparing a monthly cash budget. The following information relates to the month
The controller of Arrowroot Company wishes to improve the company's control systemm by preparing a monthly cash budget. The following information relates to the month ending July 31, 20XS: June 30, 20X5, cash balance Dividends to be declared on June 15 Cash expenditures to be paid In July for operating $112,000 35,000 79,100 expenses Depreciation expense Cash collections to be recelved Merchandise purchases to be pald In cash Equipment to be purchased for cash Arrowroot Company wishes to maintain a 11,200 189,000 117,900 44,300 52,000 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 ended July 31, 20X5, 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 COMPANY Cash budget for July 20x5 Cash balance, beginning Add cash receipts, Collections from customers Total cash available before current financin Deduct: disbursements Payment to suppliers for merchandise Operating expenses Purchase of equipment Dividends paid 112,000 189,000 301,000 117,900 79,100 44.300 35,000 Total disbursements 276,300 24,700 Excess (deficiency) of cash available over
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