During the last week of August. Oneida Company's owner approaches the bank for a $109,500 loan to be made on September 2 and repaid on November 30 with annual interest of 9%, for an interest cost of $2,464. 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, $131,400 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. September $ 240,000 225,000 October $395,000 205,000 November $ 460,000 202,000 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20,000 11.000 33,800 22,150 11,000 30.800 24.600 11,000 20.950 109,500 2.464 "Operations began in August: August sales were $180,000 and purchases were $120,000. 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 Rent 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: 80% of the balance is paid in the month following a purchase, and the remaining 20% is paid in the second month For example of the $120.000 August purchases $96.000 will be paid in September and $24.000 in October Required: Prepare a cash budget for September October, and November. 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: August September October November Totals $ 180,000 240,000 395,000 460,000 $ 1,275,000 Calculation of cash payments for merchandise Paid in August September October November 30. November Accounts Pay. Total Purchases Purchases from: August $ 120.000 Calculation of cash payments for merchandise -Paid in- August September October November 30. Total Purchases November Accounts Pay. Purchases from August September $ October 120,000 225,000 205,000 202,000 752,000 November Totals $ ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $4,500 Cash receipts L November ! Total cash available Cash payments Total cash payments Ending cash balance