The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of $130,000 44,000 83,600 13,000 198,000 122,400 47,000 70,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning $ 130,000 130,000 Total cash available before current financing Less disbursements: 0 $ 130,000 Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing 0 2. Which of the following statement is true? (Click to select)