During the last week of August, Oneida Companys owner approaches the bank for a $109,500 loan to be made on September 2 and repaid on November 30 with annual interest of 16%, for an interest cost of $4,380. 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 $4,500 cash balance, $114,000 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	$	220,000	$	395,000	$	520,000
Merchandise purchases		220,000		225,000		191,000
Cash payments
Payroll		19,700		21,950		23,900
Rent		10,000		10,000		10,000
Other cash expenses		35,100		29,600		20,150
Repayment of bank loan						109,500
Interest on the bank loan						4,380

*Operations began in August; August sales were $150,000 and purchases were $110,000. 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 $66,000 of the $150,000 will be collected in September, $31,500 in October, and $12,000 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.)

Calculation of cash receipts from sales November 30 Accounts Rec Collected in Total Sales Uncollectible August September October November Credit sales from August September October November Totals $150,000 220,000 395,000 520,000 1,285,000 Calculation of cash payments for merchandise November 30 Accounts Pa Paid in Total Purchases August September October November Purchases from August September October $ 110,000 220,000 225,000 ONEIDA COMPANY Cash Budget For September, October, and November September October November $ 4,500 Beginning cash balance Cash receipts Collection on accounts receivable Receipts from bank loan Total cash available Cash payments: Payments on accounts ayable Pavroll Rent Other cash expenses Repavment on bank loan Interest on bank loan Total cash payments Ending cash balance 0 0 0