During the last week of August, Oneida Company's owner approaches the bank for a $104,500 loan to be made on September 2 and repaid on November 30 with annual interest of 13%, for an interest cost of $3.396. 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, $116.800 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. September October $260,000 $395,000 240,000 205,000 November $450,000 202,000 Budgeted Figures* Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 19,800 12,000 35,200 22,100 12,000 31,200 23,800 12,000 21,400 104,500 3,396 "Operations began in August; August sales were $160.000 and purchases were $115.000. 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 percents to the August credit sales, for example, shows that $70,400 of the $160,000 will be collected in September, $35.200 in October, and $9.600 in November. All merchandise is purchased on credit: 70% of the balance is paid in the month following a purchase, and the remaining 30% is paid in the second month. For example, of the $115.000 August purchases, $80.500 will be paid in September and $34,500 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--------------- November 30. Total Sales Uncollectible August September October November Accounts Rec. Credit sales from: August September October November $ 160,000 260.000 395.000 450.000 $ 1.265.000 Totals Calculation of cash payments for merchandise -------------------Paid in------------------- November 30. August September October November Accounts Pay. Total Purchases $ Purchases from: August September October November Totals 115,000 240.000 205.000 202.000 762.000 $ ONEIDA COMPANY Cash Budget For September October, and November September October Beginning cash balance $ 4.500 Cash receipts November Total cash available Cash payments: 0 Total cash payments Ending cash balance