During the last week of August, Oneida Companys owner approaches the bank for an $105,500 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,165. 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, $121,600 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	$	260,000	$	395,000	$	460,000
Merchandise purchases		220,000		205,000		194,000
Cash disbursements
Payroll		20,300		22,050		24,800
Rent		12,000		12,000		12,000
Other cash expenses		33,900		31,000		20,100
Repayment of bank loan						105,500
Interest on the bank loan						3,165

*Operations began in August; August sales were $160,000 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 $70,400 of the $160,000 will be collected in September, $33,600 in October, and $12,800 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 for Oneida Company. Show supporting calculations as needed.