During the last week of August, Oneida Companys owner approaches the bank for a $109,000 loan to be made on September 2 and repaid on November 30 with annual interest of 13%, for an interest cost of $3,543. The owner plans to increase the stores inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The banks loan officer needs more information about Oneidas ability to repay the loan and asks the owner to forecast the stores November 30 cash position. On September 1, Oneida is expected to have a $4,500 cash balance, $130,900 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	$	455,000	$	450,000
Merchandise purchases		225,000		205,000		197,000
Cash payments
Payroll		20,000		21,900		24,500
Rent		10,000		10,000		10,000
Other cash expenses		34,900		29,800		21,300
Repayment of bank loan						109,000
Interest on the bank loan						3,543

*Operations began in August; August sales were $170,000 and purchases were $110,000. 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 $79,900 of the $170,000 will be collected in September, $32,300 in October, and $11,900 in November. All merchandise is purchased on credit; 60% of the balance is paid in the month following a purchase, and the remaining 40% is paid in the second month. For example, of the $110,000 August purchases, $66,000 will be paid in September and $44,000 in October. Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.)

Calculation of cash receipts from sales
			------------------Collected in-------------------				November 30.
	Total Sales	Uncollectible	August	September	October	November	Accounts Rec.
Credit sales from:
August	$170,000
September	220,000
October	455,000
November	450,000
Totals	$1,295,000
Calculation of cash payments for merchandise
			------------------Paid in-------------------				November 30.
	Total Purchases		August	September	October	November	Accounts Pay.
Purchases from:
August	$110,000						$0
September	225,000
October	205,000
November	197,000						0
Totals	$737,000

Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.) Calculation of cash receipts from sales --------------...-Collected in-.................. November 30. Uncollecti August Septemb October November Accounts Rec. Sales Credit sales from: August 170.000 September 220,000 October 455,000 November 450,000 $ Totals 1,295,000 Calculation of cash payments for merchandise ------------------Paid in ------------------- November 30. Total Purchases August Septemb October November Accounts Purchases from: August 110,000 September 225,000 Coole T ennol ONEIDA COMPANY Cash Budget For September, October, and November September October November Beginning cash balance $ 4,500 Cash receipts Collection on accounts receivable Receipts from bank loan Total cash available Cash payments: Payments on accounts payable Payroll 20,000 Rent 10,000 10,000 10,000 Other cash expenses | Repayment on bank loan Interest on bank loan Total cash payments Ending cash balance 30,000 10,000 10,000