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Cash payments Rent 9,000 Oneida Company's operations began in August. August sales were $160,000 and purchases were $125,000. The beginning cash balance for september is

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Cash payments Rent 9,000 Oneida Company's operations began in August. August sales were $160,000 and purchases were $125,000. The beginning cash balance for september is $34,000. Oneida's owner approaches the bank for a $100,000 loan to be made on September 2 and repaid on November 30. The bank's loan officer asks the owner to prepare monthly cash budgets. Its budgeted sales, merchandise purchases, and cash payments for other expenses for the next three months follow. mudgeted September October November Sales $ 250,000 $425,000 $ 490,000 Merchandise purchases 235,000 205,000 192,000 Salarien 31,000 31,800 31,800 9,000 9,000 Insurance 6,000 6,000 6,000 Repayment of loan 100,000 Interest on loan 1.000 1.000 1,000 All sales are on credit where 77% of credit sales are collected in the month following the sale, and the remaining 23% collected in the second month following the sale. All merchandise is purchased on credit: 87% of the balance is paid in the month following a purchase, and the remaining 13% is paid in the second month. Required: Prepare the following for the months of September October, and November 1. Schedule of cash receipts from sales 2. Schedule of cash payments for direct materials 3. Cash budget Prepare the cash budget. ONEIDA COMPANY Cash Budget October $ September $ 34,000 123,200 157,200 100,650 229,300 329,950 November $ 61,450 392,450 453,900 Beginning balance Add: Cash receipts from sales Total cash available Less: Cash payments for Salaries Rent Insurance Interest on loan Merchandise purchases Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan 31,800 9,000 6,000 1,000 108,705 X 156,505 695 X $ 31,800 9,000 6,000 1,000 204,450 $ 252,250 77,000 $ 31,800 9,000 6,000 1,000 178,350 226,150 227,750 $ $ 100,000 (100 non

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