Chapter 22 Assignment Saved 19 Problem 22-6AA Merchandising: Preparation of cash budgets (for three periods) LO P4 577 points Skipped During the last week of August, Oneida Company's owner approaches the bank for a $102,000 loan to be made on September 2 and repaid on November 30 with annual interest of 14%, for an interest cost of $3,570. 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 $4,500 cash balance, $138,600 of net accounts receivable, and $100,000 of accounts payable Its budgeted sales, merchandise purchases, and various cash payments for the next three months follow Budgeted Figures September October November Sales $ 220,000 $ 465,000 5 450,000 Merchandise purchases 235,000 220,000 202.000 Cash payments Payroll 20,400 22,150 23.900 Rent 11,000 11,000 Other cash expenses 11.000 39,800 31,800 21,050 Repayment of bank loan 102,000 Interest on the bank loan 3,570 Book Pin "Operations began in August, August sales were $180,000 and purchases were $115,000, The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 23% of credit sales is collected in the month of the sale. 47% in the month following the sale, 19% in the second month, 7% in the third and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that 584 600 of the S180,000 will be collected in September, $34,200 in October, and $12,600 in November. All merchandise is purchased on credit: 50% of the balance is paid in the month following a purchase, and the remaining 50% is paid in the second month. For example of the $115.000 August purchases. $57,500 will be paid in September and $57500 in October Required: Prepare a cash budget for September October, and November Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare the calculation of cash receipts from sales and calculation of cash payments for merchandise Calculation of cash receiptstrom sales PONIESI