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During the last week of August. Oneida Company's owner approaches the bank for a $106,000 loan to be made on September 2 and repaid on

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During the last week of August. Oneida Company's owner approaches the bank for a $106,000 loan to be made on September 2 and repaid on November 30 with annual interest of 15%, for an interest cost of $3,975. 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 Onelda'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, $152,000 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 $ 240,000 $415,000 $ 510,000 Merchandise purchases 230,000 210,000 200,000 Cash payments Payroll 20,500 21,950 24,800 Rent 20,000 10, eee 20,000 Other cash expenses 34,900 29,200 21,000 Repayment of bank loan 106,000 Interest on the bank loan 3,975 Operations began in August, August sales were $200,000 and purchases were $120,000. 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 $88,000 of the $200,000 will be collected in September, $42.000 in October, and $16.000 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 $120,000 August purchases, $48,000 will be paid in September and $72,000 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 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 August September October November Totals $ 200,000 240,000 415,000 510,000 $ 1,365,000 Calculation of cash payments for merchandise -Paid in Total Purchases November 30 August September October November Accounts Pay. Purchases from August September October November 0 $ 120,000 230.000 210,000 200,000 $ 760,000 Totals 0 Cash Budget > Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dolla ONEIDA COMPANY Cash Budget For September October, and November September October Beginning cash balance 4,500 Cash receipts November Total cash available Cash payments Total cash payments Ending cash balance 0 0

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