The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following

information relates to the month ending May $31,2024$:

April $30,2024,$ cash balance

$ $90,000$

Dividends to be declared on April $15*$

$24\mathrm{.}000$

Cash expenditures to be paid in May for operating expenses

$73\mathrm{.}600$

Depreciation expense

$9\mathrm{.}000$

Cash collections to be received

$178,000$

Merchandise purchases to be paid in cash

$112\mathrm{.}400$

Equipment to be purchased for cash

$41\mathrm{.}000$

Big River wishes to maintain a minimum cash balance of

$30\mathrm{.}000$

Dividends are pavable to sharenolders of record on declaration date. $30$ davs after declaration.

Required:

$1.$ Prepare a cash budget for the month ended May $31,2024,$ indicating how much, if anything, Big River will need to borrow to meet its

minimum cash requirement.

$2.$ Supposing the cash management policy at Big River 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 Big River.