EMERGENCY!!

During the last week of August, Oneida Companys owner approaches the bank for a $106,500 loan to be made on September 2 and repaid on November 30 with annual interest of 15%, for an interest cost of $3,994. 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 $4,000 cash balance, $115,200 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	$	230,000	$	435,000	$	450,000
Merchandise purchases		230,000		200,000		195,000
Cash payments
Payroll		19,900		22,150		23,700
Rent		11,000		11,000		11,000
Other cash expenses		34,600		29,200		20,400
Repayment of bank loan						106,500
Interest on the bank loan						3,994

*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 28% of credit sales is collected in the month of the 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 $68,800 of the $160,000 will be collected in September, $36,800 in October, and $8,000 in November. All merchandise is purchased on credit; 60% of the balance is paid in the month following a purchase, and the remaining 40% is paid in the second month. For example, of the $105,000 August purchases, $63,000 will be paid in September and $42,000 in October. Required: Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.)