During the last week of August, Oneida Companys owner approaches the bank for a $99,500 loan to be made on September 2 and repaid on November 30 with annual interest of 10%, for an interest cost of $2,488. The owner plans to increase the stores inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The banks loan officer needs more information about Oneidas ability to repay the loan and asks the owner to forecast the stores November 30 cash position. On September 1, Oneida is expected to have a $4,000 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.

Budgeted Figures*	September		October		November
Sales	$	250,000	$	445,000	$	520,000
Merchandise purchases		225,000		210,000		194,000
Cash payments
Payroll		20,400		21,900		23,600
Rent		11,000		11,000		11,000
Other cash expenses		33,900		29,800		20,250
Repayment of bank loan						99,500
Interest on the bank loan						2,488

*Operations began in August; August sales were $160,000 and purchases were $110,000. 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; 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 $110,000 August purchases, $66,000 will be paid in September and $44,000 in October. Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.)

1.

Calculation of cash receipts from sales
			------------------Collected in-------------------				November 30.
	Total Sales	Uncollectible	August	September	October	November	Accounts Rec.
Credit sales from:
August	$160,000
September	250,000
October	445,000
November	520,000
Totals	$1,375,000
Calculation of cash payments for merchandise
			------------------Paid in-------------------				November 30.
	Total Purchases		August	September	October	November	Accounts Pay.
Purchases from:
August	$110,000						$0
September	225,000
October	210,000
November	194,000						0
Totals	$739,000

2.

ONEIDA COMPANY
Cash Budget
For September, October, and November
	September	October	November
Beginning cash balance	$4,000
Cash receipts
Total cash available
Cash payments:
Total cash payments	0	0	0
Ending cash balance