During the last week of August, Oneida Company's owner approaches the bank for a $107,500 loan to be made on September 2 and repaid on November 30 with annual interest of 14%, for an interest cost of $3,763. 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, $123,200 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 $ 230,000 $ 435,000 $ 500,000 Merchandise purchases 235,000 210,000 194,000 Cash payments Payroll 20,000 22,100 24,600 Rent 9,000 9,000 9,000 Other cash expenses 34,700 30, 600 21,550 Repayment of bank loan 107,500 Interest on the bank loan 3,763 *Operations began in August; August sales were $160,000 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 $75,200 of the $160,000 will be collected in September, $30,400 in October, and $11,200 in November. All merchandise is purchased on credit; 40% of the balance is paid in the month following a purchase, and the remaining 60% is paid in the second month. For example, of the $100,000 August purchases, $40,000 will be paid in September and $60,000 in October. 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. Credit sales from: August September October November Totals $ 160,000 230,000 435,000 500,000 $ 1,325,000 Calculation of cash payments for merchandise --Paid in- November 30. Total Purchases August September October November Accounts Pay. $ 0 Purchases from: August September October $ 100,000 235,000 210,000 0 November Totals 194,000 $ 739,000 ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance 4,500 Cash receipts November Total cash available Cash payments: $ 4,500 Beginning cash balance Cash receipts Total cash available Cash payments: 0 0 0 Total cash payments Ending cash balance