Need help with both parts plz!!
During the last week of August, Oneida Company's owner approaches the bank for a $103,000 loan to be made on September 2 and repaid on November 30 with annual Interest of 12% for an interest cost of $3,090. 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 Onelda's ability 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 $4.000 cash balance, $124,100 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. ases, and various cash pa b er September $220.000 240,00 October 485.000 205, cee November 420.ece 191, Budgeted Figures Sales Merchandise purchases Cash payments Payroll Rent Other cash expenses Repayment of bank loan Interest on the bank loan 20,5ee 9.000 34.800 2 1,950 9.000 2 9.8ee 24,780 9.680 21,550 103,eee 3,ege "Operations began in August, August sales were $170,000 and purchases were $115,000. 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 those percents to the August credit sales, for example, shows that $74,800 of the $170,000 will be collected in September, $37.400 in October, and $10.200 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 $115,000 August purchases. $69,000 will be paid in September and $46,000 in October Requirect Prepare a cash budget for September October, and Novembe Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Calculation Cash Budget 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 October November Totals 170,000 220,000 485,000 420.000 Calculation of cash payments for merchandise - ---Paid in... August September October November 30. Total Purchases November Accounts Pay. Purchases from $ August September October November 115,000 240 000 205 000 Totals Cash Butlet Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare a cash budget for September, October, and November. (Round your final answers to the nearest whole dollar.) ONEIDA COMPANY Cash Budget For September October, and November September October Beginning cash balance Cash receipts November Total cash available Cash payments Total cash payments Ending cash balance
