During the last week of August, Oneida Company's owner approaches the bank for a $99,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,208. 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 $4,000 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 $ 220,000 $455,000 $ 450,000 Merchandise purchases 225,000 210,000 199,000 Cash payments Payroll 19,800 21,850 23,900 Rent 9,000 9,000 9.000 Other cash expenses 33,700 30,000 21.400 repayment of bank loan 99.000 Interest on the bank loan 4,200 Operations began in August, August sales were $200,000 and purchases were $100.000 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, BX 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 $15,000 in November . All merchandise is purchased on credit: 50% of the balance is paid in the month following a purchase, and the remaining 50% is paid in the second month. For example of the $100,000 August purchases, $50,000 will be paid in September and $50,000 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 Prepare the calculation of cash receipts from sales and calculation of cash payments for merchandise Calculation of cash receipts from sales --Collected in-... Uncollectible August September October November 30 Accounts Rec. Total Sales November 5 0 0 Credit sales from August September October November Total $ 200,000 220,000 455,000 450.000 $ 1,325.000 6,000$ 48,000 $ 6,600 52,800 13.650 109.200 13.500 100,000 $ 310,000 88,000 $ 42,000$ 16,000$ 96,000 46.2003 17,000 200,200 95.550 36,400 198,000 94,500 106.000 583.000 $ 270.250 $ 170.000 (70,000) Calculation of cash payments for merchandise -Paid in November 30 Accounts Pay . Total Purchases August September October November Purchases from August September $ $ 50,000 9 100,000 225.000 50,000 112,500 112.500 0 Mc ONEIDA COMPANY Cash Budget For September, October, and November September October November $ Beginning cash balance 4,000 $ 573,500 $ 628,400 Cash receipts Receipts from bank loan 99,000 Collection on accounts receivable 583,000 278,250 X 106,000 Total cash available 686,000 851,750 734,400 Cash payments: Payroll 19,800 21,850 23,900 Rent 9,000 9,000 9,000 Other cash expenses 33,700 30,000 21,400 Repayment on bank loan 99,000 Interest on bank loan 4,208 Payments on accounts payable 50,000 162,500 225,508 otal cash payments Ending cash balance 112,500 573,500 223,350 $ 628,400 383,016 354,392 x $ $