During the last week of August, Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,240. 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, $130,900 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 $ 230,000 225,000 October $ 455,000 220,000 November $500,000 198,000 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 19,700 12,000 34,300 22,100 12,000 29, 200 23,700 12,000 21,100 108,000 3,240 * 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 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 $79,900 of the $170,000 will be collected in September, $32,300 in October, and $11,900 in November. All merchandise is purchased on credit; 70% of the balance is paid in the month following a purchase, and the remaining 30% is paid in the second month. For example, of the $115,000 August purchases, $80,500 will be paid in September and $34,500 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-- Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from: August September October November Totals $ 170,000 230,000 455,000 500,000 $ 1,355,000 Calculation of cash payments for merchandise ---------Paid in-- November 30. November Accounts Pay. Total Purchases August September October $ Purchases from: August September October November Totals 115,000 225,000 220,000 198,000 758,000 $ November ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,000 Cash receipts Cash sales Receipts from bank loan Total cash available Cash payments: Total cash payments Ending cash balance