During the last week of August, Oneida Company's owner approaches the bank for a $101,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,030. 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, $109,500 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 $ 260,000 220,000 October $435,000 210,000 November $430,000 192,000 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 19,900 10,000 34,380 21,950 10,000 31,280 24,480 10,000 21,400 101,900 3,30 "Operations began in August, August sales were $150,000 and purchases were $105.000. The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 27% of credit sales is collected in the month of the sale. 44% in the month following the sale, 22% in the second month. 6% 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, $33.000 in October, and $9,000 in November. All merchandise is purchased on credit: 30% of the balance is paid in the month following a purchase, and the remaining 70% is paid in the second month. For example, of the $105,000 August purchases, $31.500 will be paid in September and $73,500 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 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 $ 150.000 260.000 435.000 430,000 $ 1.275,000 Calculation of cash payments for merchandise Paid in- Total Purchases November 30. November Accounts Pay. August September October Purchases from: August September $ October 105,000 220,000 210,000 192.000 727.000 November Totals $ ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance $ 4,500 Cash receipts November Total cash available Cash payments EL D 0 0 0 Total cash payments Ending cash balance