Check m During the last week of August, Oneida Company's owner approaches the bank for a $99,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,208. 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 $4,000 cash balance, $152,000 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 $ 455, 000 $ 450, 000 eBook Merchandise purchases 225, 000 210,000 199 ,000 Cash payments Payroll 19, 800 21 , 850 23, 900 Rent 9, 000 9,000 9,000 Ask Other cash expenses 33, 700 30,000 21, 400 Repayment of bank loan 99, 000 Interest on the bank loan 4, 208 Print *Operations began in August; August sales were $200,000 and purchases were $100,000. References The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 24% of credit sales is collected in the month of the sale, 44% in the month following the sale, 21% in the second month, 8% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $88,000 of the $200,000 will be collected in September, $42,000 in October, and $16,000 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 $100,000 August purchases, $50,000 will be paid in September and $50,000 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 Mc Graw Hill