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 17%, for an interest cost of $4,696. 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 $4,000 cash balance, $131,400 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	$	260,000	$	465,000	$	460,000
Merchandise purchases		220,000		205,000		203,000
Cash payments
Payroll		20,300		22,100		24,000
Rent		8,000		8,000		8,000
Other cash expenses		35,200		29,200		21,450
Repayment of bank loan						110,500
Interest on the bank loan						4,696

*Operations began in August; August sales were $180,000 and purchases were $115,000. 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 $79,200 of the $180,000 will be collected in September, $39,600 in October, and $10,800 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 $115,000 August purchases, $69,000 will be paid in September and $46,000 in October.

Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.)

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. ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,000 Cash receipts November Credit sales from: August September October $ 180,000 260,000 465,000 460,000 $ 1,365,000 November Totals Total cash available Cash payments: Calculation of cash payments for merchandise -----------------Paid in------ August September October Total Purchases November 30. November Accounts Pay. Purchases from: August September October November Totals $ 115,000 220,000 205,000 203,000 $ 743,000 Total cash payments Ending cash balance 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. ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,000 Cash receipts November Credit sales from: August September October $ 180,000 260,000 465,000 460,000 $ 1,365,000 November Totals Total cash available Cash payments: Calculation of cash payments for merchandise -----------------Paid in------ August September October Total Purchases November 30. November Accounts Pay. Purchases from: August September October November Totals $ 115,000 220,000 205,000 203,000 $ 743,000 Total cash payments Ending cash balance