During the last week of August, Oneida Companys owner approaches the bank for a $104,000 loan to be made on September 2 and repaid on November 30 with annual interest of 9%, for an interest cost of $2,340. 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, $146,300 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.

Budgeted Figures*	September		October		November
Sales	$	260,000	$	455,000	$	480,000
Merchandise purchases		225,000		205,000		197,000
Cash payments
Payroll		20,500		22,000		24,500
Rent		10,000		10,000		10,000
Other cash expenses		35,200		30,400		21,350
Repayment of bank loan						104,000
Interest on the bank loan						2,340

*Operations began in August; August sales were $190,000 and purchases were $100,000. 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 $89,300 of the $190,000 will be collected in September, $36,100 in October, and $13,300 in November. All merchandise is purchased on credit; 50% of the balance is paid in the month following a purchase, and the remaining 50% is paid in the second month. For example, of the $100,000 August purchases, $50,000 will be paid in September and $50,000 in October. Required: Prepare a cash budget for September, October, and November.

Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare the calculation of cash receipts from sales and calculation of cash payments for merchandise. Calculation of cash receipts from sales ....-Collected in------ Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from: $ 190,000 August September 260,000 455,000 October November 480,000 Totals Calculation of cash payments for merchandise ------------------Paid in------------------- November 30. Total Purchases August September October November Accounts Pay. Purchases from: August September October $ 100,000 225,000 205,000 197,000 November Totals $ 727,000 Calculation Cash Budget Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole doll ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,000 November Cash receipts Total cash available Cash payments: Total cash payments Ending cash balance