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During the last week of August, Oneida Company's owner approaches the bank for a $102,000 loan to be made on September 2 and repaid on

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During the last week of August, Oneida Company's owner approaches the bank for a $102,000 loan to be made on September 2 and repaid on November 30 with annual interest of 9%, for an interest cost of $2,295. 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 $4,000 cash balance, $146,300 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. ces Budgeted Figures Sales September October November $230,000 $485,000 $410,000 225,000 225,000 Merchandise purchases Cash payments Payroll Rent 201,000 21,850 9,000 29,400 24,300 9,000 21,300 19,900 9,000 Other cash expenses Repayment of bank loan Interest on the bank loan 34,700 102,000 2,295 Operations began in August; August sales were $190,000 and purchases were $110,000 The budgeted September merchandise purchases include the inventory increase. All sales are on account The company predicts that 23 % of credit sales is collected in the month of the sale, 47% in the month following the sale, 19% in the second month, 7% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $89,300 of the $190,000 will be collected in Sentemher $36100 in October and $13 300 in November All merchandise is nurchased on 2 of 6 updates O Login | National U.. Kids omework Seved Help Operations began in August; August sales were $190,000 and purchases were $110,000. The budgeted September merchandise purchases include the inventory increase. All sales are on account The company predicts that 23 % of credit sales is collected in the month of the sale, 47% in the month following the sale, 19% in the second month, 7% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $89,300 of the $190,000 will be collected in September, $36,100 in October, and $13,300 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 $110,000 August purchases, $55,000 will be paid in September and $55,000 in October. Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.) Calculation of cash recelpts from sales -Collected in- November 30. Total Sales Uncollectible August September October November Accounts Rec. Credit sales from $ 190,000 August September 230,000 October 485,000 November 410,000 Totals $ 1,315,000 Login | National U.. Kids Saved Homework Calculation of cash recelpts from sales November 30. -Collected in Accounts Rec. August September October November Total Sales Uncollectible Credit sales from: $ 190,000 August 230,000 September 485,000 October November 410,000 $1,315,000 Totals Calculation of cash payments for merchandise Pald in- November 30, Total Purchases August September October November Accounts Pay Purchases from $ 110,000 August 0 September 225,000 October 225,000 November 201,000 0 $ 761,000 Totals Prev 2 nf 6

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