What would be the impact on the cash budget if 30% ( instead of 25%) of credit sales is collected in the month of the sale? (Note this is the only change).

b. What would be the impact on the cash budget, if 90% ( instead of 80%) of the merchandise is paid in the month following the purchase?

Problem 22-6A (50 minutes) ONEIDA COMPANY Cash Budget For September, October, and November Cash receipts 159,250249,250338,100 Receipts from bank loan Total cash available Cash disbursements 100,000 264,250 348,500407,600 Payroll Rent Other expenses Repayment on bank loan Interest on bank loan* Total cash disbursements 100,000 217,000228,000 24,000 10,000 20,000 100,000 3,000 165,000 279.000 385.000 20,000 10,000 35,000 22,000 10,000 30,000 Interest at 12% on $100,000 for 3 months is $3,000. Supporting schedules Collections of credit sales* Aug. sales ($215,000)-[25%: 45%: 20%: 9%) Sept. sales ($250,000-25%: 45%: 20%) Oct. sales ($375,000 [25%: 45%) Nov. sales ($400,000)-25%) Total August $ 53,750 Septem- October Novem $ $ 19,350 50,000 93,750168,750 100,000 $53,750 $159,250 $249,25 $338,100 $ 96,750 62,500 112,500 August $ Septem- October Novem $100,000 Payments on credit purchases*" Aug. purchases ($125,000)-(0%: 80%: 20%) Sept. purchases ($240,000)-(0%: 80%: 20%) Oct. purchases ($225,000)-(0%: 80%) Nov. purchases ($200,000)-(0%) Total 0 48,000 0 180,000 0 192,000 $100,000 S217.00 $228.000