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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 13%, for an interest cost of $3,331. 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 Onelda'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, $121,600 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. September $ 230,000 225,000 October $ 415,000 220,000 November $ 440,000 198,000 Budgeted Figures. Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20.100 8,000 34,500 22,150 8,000 29,400 24,500 8,000 21,350 102,500 3,331 Operations began in August, August sales were $160,000 and purchases were $105,000. 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, 8% 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, $33,600 in October, and $12,800 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 $105,000 August purchases, $52,500 will be paid in September and $52,500 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 Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from August $ 160,000

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