During the last week of August, Oneida Company's owner approaches the bank for a $99,500 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $2,985. 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, $122,400 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 Sales Merchandise purchases Cash payments Payroll September $ 260,000 225,000 October $ 415,000 210,000 November $ 440,000 192,000 19,700 10,000 34,800 22,100 10,000 30,200 Other cash expenses Repayment of bank loan Interest the bank loan 23,600 10,000 20,600 99,500 2,985 "Operations began in August, August sales were $170,000 and purchases were $115,000. The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 28% of credit sales is collected in the month of the sale, 43% in the month following the sale, 23% in the second month. 5% in the third and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $73.100 of the $170.000 will be collected in September. $39,100 in October, and $8,500 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 $115.000 August purchases, $46,000 will be paid in September and $69.000 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 November 30. Total Sales Uncollectible August September October November Accounts Rec. Credit sales from: August September October $ 170,000 260.000 415.000 440,000 $ 1.285.000 November Totals Calculation of cash payments for merchandise -Paid in November 30. Total Purchases August September October November Accounts Pay. Purchases from: S 115.000 0 August September October 225.000 210.000 192.000 November 0 Totals $742.000 ONUDA 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