During the last week of August, Oneida Company's owner approaches the bank for a $109,500 loan to be made on September 2 and repaid on November 30 with annual interest of 14%, for an interest cost of $3,833. 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, $116,800 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 $ 210,000 230,000 October $435,000 200, eee November $440,000 197,00 Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20,400 10,000 34,900 21,950 10,000 31, eee 24,300 10,000 20,20 109,500 3,833 "Operations began in August. August sales vere $160,000 and purchases were $120,000 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 $70,400 of the $160.000 will be collected in September. $35,200 in October, and $9.600 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 $120.000 August purchases, $84,000 will be paid in September and $36.000 in October Required: Prepare a cash budget for September October, and November 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 September $ 160,000 210,000 435,000 440,000 October November Totals Calculation of cash payments for merchandise Paid in Total Purchases November 30. November Accounts Pay. August September October Purchases from: August September October November Totals $ 120,000 230,000 200,000 197,000 $ 747.000 Prepare a cash budget for September, October, and November. (Round your final answe ONEIDA COMPANY Cash Budget For September, October, and November September October Beginning cash balance 4,500 Cash receipts November $ Total cash available Cash payments: | Total cash payments Ending cash balance