252Fnu.blackboa a favorites here on the favorites bar. Manage favorites now Homework Seved During the last week of August. Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,590. The owner plans to increase the store's inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Oneida's ability to repay the loan and asks the owner to forecast the store's November 30 cash position on September 1, Oneida is expected to have a 54,500 cash balance, $116,800 of net accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow, Budgeted Figures September October November Sales $ 250,000 $425,000 $ 490,000 Merchandise purchases 230,000 220,000 193,000 Cash payments Payroll 20, 500 21,900 23,800 Rent 11,000 11,000 11,000 Other cash expenses 33,900 31,200 20,150 Repayment of bank loan 188,000 Interest on the bank loan 4,590 Operations began in August, August sales were $160,000 and purchases were $120.000 The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 27% of credit sales is collected in the month of the sale, 44% in the month following the sale, 22% in the second month, 6% in the third. and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $70,400 of the $160,000 will be collected in September, $35,200 in October, and $9,600 in November. All merchandise is purchased on credit: 80% of the balance is paid in the month following a purchase and the remaining 20% is paid in the second month. For example of the $120,000 August purchases, 596,000 will be paid in September and $24,000 in October Required: Prepare a cash budget for September October, and November (Round your final answers to the nearestlwhole dollar.) Calculation of cash receipts from sales Collected in Total Sales Uncollectible August September October November 30, November Accounts Rec. Credit sales from November 383.900 ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4.500 Cash receipts Collection on accounts receivable 137.900 259,950 Receipts from bank loan 108,000 Total cash available 250,400 Cash payments Payments on accounts payable 96,000 208,000 Payroll 20,500 21,900 Rent 11,000 11,000 Other cash expenses 33,900 31,200 Repayment on bank loan Interest on bank loan 222.000 23,800 11.000 20.150 108,000 4,590 Total cash payments Ending cash balance 272,100 389,540 161,400 89,000 $ 252Fnu.blackboa a favorites here on the favorites bar. Manage favorites now Homework Seved During the last week of August. Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,590. The owner plans to increase the store's inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Oneida's ability to repay the loan and asks the owner to forecast the store's November 30 cash position on September 1, Oneida is expected to have a 54,500 cash balance, $116,800 of net accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow, Budgeted Figures September October November Sales $ 250,000 $425,000 $ 490,000 Merchandise purchases 230,000 220,000 193,000 Cash payments Payroll 20, 500 21,900 23,800 Rent 11,000 11,000 11,000 Other cash expenses 33,900 31,200 20,150 Repayment of bank loan 188,000 Interest on the bank loan 4,590 Operations began in August, August sales were $160,000 and purchases were $120.000 The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 27% of credit sales is collected in the month of the sale, 44% in the month following the sale, 22% in the second month, 6% in the third. and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $70,400 of the $160,000 will be collected in September, $35,200 in October, and $9,600 in November. All merchandise is purchased on credit: 80% of the balance is paid in the month following a purchase and the remaining 20% is paid in the second month. For example of the $120,000 August purchases, 596,000 will be paid in September and $24,000 in October Required: Prepare a cash budget for September October, and November (Round your final answers to the nearestlwhole dollar.) Calculation of cash receipts from sales Collected in Total Sales Uncollectible August September October November 30, November Accounts Rec. Credit sales from November 383.900 ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4.500 Cash receipts Collection on accounts receivable 137.900 259,950 Receipts from bank loan 108,000 Total cash available 250,400 Cash payments Payments on accounts payable 96,000 208,000 Payroll 20,500 21,900 Rent 11,000 11,000 Other cash expenses 33,900 31,200 Repayment on bank loan Interest on bank loan 222.000 23,800 11.000 20.150 108,000 4,590 Total cash payments Ending cash balance 272,100 389,540 161,400 89,000 $