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During the last week of August, Oneida Company's owner approaches the bank for a $102,500 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 $102,500 loan to be made on September 2 and repaid on November 30 with annual interest of 14%, for an interest cost of $3,588. 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, $146,300 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 $ 250,000 220,000 October $ 455,000 205,000 November $ 490.000 193,000 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20,400 10,000 33,900 22.050 10,000 29.400 23, 800 10,000 21,300 102,500 3,588 "Operations began in August, August sales were $190,000 and purchases were $110,000 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 $89,300 of the $190,000 will be collected in September, $36,100 in October, and $13,300 in November. All merchandise is purchased on credit: 80% of the balance is paid in the month following a purchase, and the remaining 20% is paid in the second month. For example, of the $110,000 August purchases, $88,000 will be paid in September and $22,000 in October. Required: Prepare a cash budget for September October, and November (Round your final answers to the nearest whole dollar.) 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 190,000 September October 250,000 455,000 490,000 November Totals Calculation of cash payments for merchandise --Paid in- Total Purchases November 30. Accounts Pay. August September October November Purchases from: August September October 110,000 220,000 205,000 193,000 728.000 November Totals $

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