During the last week of August, Oneida Company's owner approaches the bank...
Savea During the last week of August, Onelda Company's owner approaches the bank for a $103.500 loan to be made on September 2 and repaid on November 30 with annual interest of 10%, for an Interest cost of $2.588 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 abillity to repay the loan and asks the owner to forecast the store's November 30 cash position. On September 1 Onelda Is expected to have a $4,500 cash balance, $129,600 of net accounts recelvable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow. Sales 240,0 435,880 438,800 248,080 28,100 34,18 295,8e9 21,850 29,208 Cash payments Payroll 24,400 18,808 Other cash expenses Repaynent of bank loan Interest on the bank loan 2,588 Operations began in August, August sales were $180,000 and purchases were $120,000. The budgeted September merchandise purchases Include the Inventory increase. All sales are on account. The company predicts that 28% or credit sales is collected in the month ofthe sale. 43% in the month following the sale, 23% in the second month, 5% in the third. and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $77400 of the $180,000 wil be collected in September. $41.400 in October, and $9,000 in November. All merchandise is purchased on credit 70% or 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 pald In September and $36,000 In October Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole doller.) Credit sales from 130,000 240,000 435.000 430.000 August October Totala of cash payments Total August September October November Accounts P Purchsses from: August 120.000 240,000 205.000 193.000 758,000 October Totala Cash Budget For September, Ootober, and November Beginnina cash balance Cash raceipts 4,500 Total cash available Cash payments: Total cash payments Ending eash balanc Savea During the last week of August, Onelda Company's owner approaches the bank for a $103.500 loan to be made on September 2 and repaid on November 30 with annual interest of 10%, for an Interest cost of $2.588 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 abillity to repay the loan and asks the owner to forecast the store's November 30 cash position. On September 1 Onelda Is expected to have a $4,500 cash balance, $129,600 of net accounts recelvable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow. Sales 240,0 435,880 438,800 248,080 28,100 34,18 295,8e9 21,850 29,208 Cash payments Payroll 24,400 18,808 Other cash expenses Repaynent of bank loan Interest on the bank loan 2,588 Operations began in August, August sales were $180,000 and purchases were $120,000. The budgeted September merchandise purchases Include the Inventory increase. All sales are on account. The company predicts that 28% or credit sales is collected in the month ofthe sale. 43% in the month following the sale, 23% in the second month, 5% in the third. and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $77400 of the $180,000 wil be collected in September. $41.400 in October, and $9,000 in November. All merchandise is purchased on credit 70% or 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 pald In September and $36,000 In October Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole doller.) Credit sales from 130,000 240,000 435.000 430.000 August October Totala of cash payments Total August September October November Accounts P Purchsses from: August 120.000 240,000 205.000 193.000 758,000 October Totala Cash Budget For September, Ootober, and November Beginnina cash balance Cash raceipts 4,500 Total cash available Cash payments: Total cash payments Ending eash balanc
