p.C Week 3 Homeworkx work and repaid on November 30 with annual interest of 12%, for an interest cost of S3 000 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 $4,500 cash balance, $130,900 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 During the last week of August, Oneida Company's owner approaches the bank for a $100,000 loan to be made on September 2 Budgeted Figures* Sales $260,000 $445,000 $490,000 235,000 210,000 200, 000 cash payments Payroll Rent Other eash expenses 20,500 21,900 23,700 12,000 12,000 12,000 100 30,800 20,600 Repaynent of bank loan 100, 000 Interest on the bank loan 3,000 Operations began in August, August sales were $170,000 and purchases were $110,000 The budgetod September merchandise purchases inckude the inventory increase All sales are on account The company predicts t at 23% o' credt sales es co o t in the month of the sale. 47% in the month fo O ing the sale 10% n he se ond m m n the thied, and the remainder is uncollectble Applying these percents to the August credit sales, for example, shows that $79,900 of the $170,000 will be collected in September, $32,300 in October, and $11,900 in November. All merchandise is purchased on credit, 60% of the balance es pad n the month follo ing a purchase, and the remaining 40% is paid in the second month For exarp e, o the $110,000 August purchases, $66,000 will be paid in September and $44,000 in October Required: Prepare a cash budget for September, October, and November (Round your final answers to the nearest whole dollar.) Credit sales from August S 170.000 264 000 645.000 Odober Prev 20t 6m Next for mercha Calculation of cash November 30. Paid in Total August September October November Accounts Pay Purchases from August s 110,000 235,000 210,000 200,000 S 755,000 October ONEIDA COMPANY Cash Budget For September, October, and November November Beginning cash balance Cash receipts 4,500 Total cash available Cash payments Prev 2of 6 Next DELL