Dive Che 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 12%, for an interest cost of $3,060. 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 $108,000 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 $ 220,000 $ 475,000 $ 440,000 Merchandise purchases 220,000 205,000 199,000 Cash payments Payroll 19,700 21,950 24,700 Rent 9,000 9,000 9,000 Other cash expenses 34,200 29,800 20,300 Repayment of bank loan 202,000 Interest on the bank loan 3,060 *Operations began in August, August sales were $150,000 and purchases were $105,000. The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 28% of credit sales is collected in the month of the sale, 43% in the month following the sale, 23% in the second month, 5% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $64.500 of the $150,000 will be collected in September, $34,500 in October, and $7,500 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 $105,000 August purchases, $84,000 will be paid in September and $21,000 in October Required: Prepare a cash budget for September October, and November. (Round your final answers to the nearest whole dollar) le . w 19 Calculation of cash receipts from sales -Collected in- Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from: August September October November $ 150,000 220,000 475,000 440,000 es Totals Calculation of cash payments for merchandise -Paid in- November 30. Total Purchases August September October November Accounts Pay. Purchases from: August September October November $ 105,000 220,000 205,000 199,000 $ 729,000 Totals ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,000 Cash receipts November Total cash available Cash payments: Total cash payments Ending cash balance