During the last week of August, Oneida Company's owner approaches the bank for a $107,000 loan to be made on September 2 and repaid on November 30 with annual interest of 10%, for an interest cost of $2,675. 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, $144,400 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.

budgeted figures: September October November

Sales $250,000. $425,000 $480,000

Merchandise Purchases. 225,000 215,000. 194,000

Cash Payments

Payroll 20,000 21,950 23,700

Rent 9,000 9,000 9,000

Other Cash Expenses. 34,400. 29,400 20,350

Repayment of Bank Loan 107,000

Interest on the Bank Loan 2,675

*Operations began in August; August sales were $190,000 and purchases were $105,000.

The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 24% of credit sales is collected in the month of the sale, 44% in the month following the sale, 21% in the second month, 8% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $83,600 of the $190,000 will be collected in September, $39,900 in October, and $15,200 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.

Can you show me how to prepare the cash receipts from sales/calculation of cash payment for merchandise then show/explain what a cash budget for September, October, and November.