Oneida Company's operations began in August. August sales were $170,000 and purchases were $120,000. The beginning cash balance for september is $30,500. Oneida's owner approaches the bank for a $109,000 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 Sales Cash payments Merchandise purchases Salaries Rent Insurance Repayment of loan Interest on loan September $220,000 October $ 485,000 November $440,000 230,000 225,000 191,000 30,400 30,400 30,400 9,000 9,000 9,000 4,200 4,200 4,200 109,000 1,090 1,090 1,090 All sales are on credit where 79% of credit sales are collected in the month following the sale, and the remaining 21% collected in the second month following the sale. All merchandise is purchased on credit; 89% of the balance is paid in the month following a purchase, and the remaining 11% 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. Required 1 Required 2 Required 3 Prepare the schedule of cash receipts from sales. Sales Cash receipts from: ONEIDA COMPANY Schedule of Cash Receipts from Sales September October November $ 220,000 $ 485,000 $440,000 Prior period sales Two periods prior sales $ 134,300 $ 383,150 13,200 $346,600 46,200 Total cash receipts < $ 134,300 $ 396,350 $ 392,800 Required 2 > 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 $ 230,000 $ 225,000 $ 191,000 Materials purchases Cash payments for Prior period purchases $ 106,800 $ 204,700 Two periods prior purchases 13,200 Total cash payments $ 106,800 $ 217,900 $ 200,250 25,300 $ 225,550 < Required 1 Required 3> ONEIDA COMPANY Cash Budget September October November Beginning balance $ 30,500 $ 122,310 69,220 Add: Cash receipts from sales 106,800 x 217,900x 225,550 Total cash available 137,300 340,210 294,770 Less: Cash payments for Salaries 30,400 30,400 30,400 Rent 9,000 9,000 9,000 Insurance 4,200 4,200 4,200 Interest on loan. 1,090 1,090 1,090 Merchandise purchases Total cash payments 44,690 44,690 44,690 Preliminary cash balance $ 92,610 $ 295,210 $ 250,080 x Loan activity Additional loan $ 109,000 0 0 Repayment of loan 0 0 109,000 Ending cash balance 201,610 x 295,210 x 359,080