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 $126,000 42,000 82, 600 12, 600 196,000 121,400 46, 400 66,000 *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). 126,000 196,000 322,000 ARROWROOT COMPANY Cash Budget for July 31, 2021 Cash balance, beginning Add cash receipts: Collections from customers Total cash available before current financing Less disbursements: Dividends paid Repayments Payments to suppliers for merchandise Dividends paid $ 42,000 82,600 121,400 46,400 292,400 29,600 Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Cash balance, ending 0 0 29,600 2. Which of the following statement is true? (Click to select)