During the last week of August. Oneida Company's owner approaches the bank for a $106,500 loan to be made on September 2 and repaid on November 30 with annual interest of 14%, for an interest cost of $3,728. 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 $4,500 cash balance. $136,800 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. M nes Budgeted Figures September October November sales $ 220,000 $ 435,000 $ 470,000 Merchandise purchases 225,000 205,000 200,000 Cash payment Payroll 20,300 22,050 23,700 Rent 10,000 10,000 10,000 Other cash expenses 34.000 31,600 21,250 Repayment of bank loan 106,500 Interest on the bank loan 3,728 "Operations began in August: August sales were $180,000 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 $79,200 of the $180,000 will be collected in September, $37,800 in October, and $14,400 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: Calculation of cash receipts from sales -Collected in- Total Sales Uncollectible August September October November 30. November Accounts Rec. Credit sales from: 0 August September October November Totals $ 180,000 $ 220,000 435,000 470,000 $ 1,305,000 5,400 $ 6,600 13,050 14,100 $ 43,200 $ 79,200 $ 37,800 $ 14,400 $ 52,800 96,800 46,200 104,400 191,400 43,200 17,600 126,150 412,700 556,450 43,200 $ 132,000 $ 239,000 $ 295,200 $ Calculation of cash payments for merchandise -Paid in November 30 September August October November Accounts Pay. Total Purchases Purchases from: $ 0 August September October 0 $ 105,000 225,000 205,000 200,000 $ 735,000 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: 0 0 0 Total cash payments Ending cash balance