Oneida Company's operations began in August. August sales were $160,000 and purchases were $105,000. The beginning cash balance for september is $33,000. Onelda's owner approaches the bank for a $99,000 loan to be made on September 2 and repaid on November 30. The bank's loan officer asks the owner to prepare monthly cash budgets. Its budgeted sales, merchandise purchases, and cash payments for other expenses for the next three months follow. Budgeted September October November Sales $ 230,000 $385,000 $ 510,000 Merchandise purchases 230,000 205,000 192,000 Cash payments Salarios 31,200 31,200 31,200 Rent 11,000 11,000 11,000 Insurance 5,700 5,700 5,700 Repayment of loan 99,000 Interest on loan 990 990 990 All sales are on credit where 72% of credit sales are collected in the month following the sale, and the remaining 28% collected in the second month following the sale. All merchandise is purchased on credit, 82% of the balance is paid in the month following a purchase, and the remaining 18% is paid in the second month, Required: Prepare the following for the months of September October, and November 1. Schedule of cash receipts from sales. 2. Schedule of cash payments for direct materials. 3. Cash budget Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the schedule of cash receipts from sales. ONEID COMPANY Schedule of Cash Receipts from Sales Soptember October Sales $ 230,000 $ 385,000 Cash receipts from: Prior period sales $ 115,200 $ 165,600 Two periods prior sales 0 44,800 Total cash receipts $ 115,200 $ 210.400 November $ 510,000 $367,200 64,400 $ 431,600 Rocuired Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the schedule of cash payments for direct materials. ONEIDA COMPANY Schedule of Cash Payments for Direct Materials September October November Materials purchases $ 230,000 $ 205,000 $ 192.000 Cash payments for Prior period purchases $ 188,600 $ 168,100 $ 157.4403 Two periods prior purchases 0 41,400 36,900 Total cash payments $ 188,600 $ 209,500 $ 194,340 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the cash budget. ONEIDA COMPANY Cash Budget October $ September S 33,000 115,200 148.200 112,210 210,400 322,610 November s 66.220 431,600 497,820 194,340 990 Beginning balance Add: Cash receipts from sales Total cash available Less: Cash payments for Merchandise purchases Interest on loan Rent Salaries Insurance Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan Ending cash balance OOOOO 188,600 209,500 990 990 11,000 11,000 31,200 31,200 5,700 5,700 237.490 258,390 $ (89,290) $ (38.280) 11,000 31,200 5,700 243,230 150,090 $ 99,000 0 9,710 0 0 (38,280) 0 (99,000) 51,090 %
