During the last week of August, Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 15%, for an interest cost of $4,050. 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, $116,800 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. September $ 250,000 230,000 November $ 490,000 191,000 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent other cash expenses Repayment of bank loan Interest on the bank loan October $ 475,000 205,000 21,950 11,000 30, 600 19,900 11,000 34,900 24,600 11,000 20,050 108,000 4,050 Operations began in August; August sales were $160,000 and purchases were $125,000 The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 27% of credit sales is collected in the month of the sale, 44% in the month following the sale, 22% in the second month, 6% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $70,400 of the $160,000 will be collected in September. $35,200 in October, and $9,600 in November. All merchandise is purchased on credit: 30% of the balance is paid in the month following a purchase, and the remaining 70% is paid in the second month. For example, of the $125,000 August purchases $37,500 will be paid in September and $87,500 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 Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from: August September October November $ 160,000 250,000 475,000 490,000 Totals Calculation of cash payments for merchandise -Paid in November 30. Total Purchases August September October November Accounts Pay Purchases from August September October $ 125,000 230.000 205.000 August September October $ 125,000 230,000 205,000 191,000 $ 751,000 November Totals ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance 4,500 Cash receipts November Total cash available ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,500 Cash receipts November Total cash available Cash payments: Total cash payments Ending cash balance