During the last week of August, Oneida Companys owner approaches the bank for a $110,500 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,315. 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, $116,800 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.

*Operations began in August; August sales were $160,000 and purchases were $105,000. 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; 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 $105,000 August purchases, $63,000 will be paid in September and $42,000 in October. Required: Prepare a cash budget for September, October, and November.

September $ 250,000 225,000 October $ 455,000 200,000 November $ 450,000 192,000 Budgeted Figures* Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20,100 12,000 34,000 21,950 12,000 30,600 24,600 12,000 20,550 110,500 3,315 Calculation Cash Budget Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.) ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,500 $ 123,800 Cash receipts Collection on accounts receivable 137,900 268,050 Receipts from bank loan 110,500 November $ 132,300 386,300 o Total cash available 252,900 391,850 518,600 Cash payments: Payments on accounts payable Payroll 63,000 20,100 12,000 34,000 0 0 195,000 X 21,950 12,000 30,600 Rent 222,000 X 24,600 12,000 20,550 110,500 3,315 Other cash expenses Repayment on bank loan Interest on bank loan Total cash payments 129,100 123,800 259,550 132,300 392,965 125,635X Ending cash balance $ $ $