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Oneida Companys operations began in August. August sales were $160,000 and purchases were $115,000. The beginning cash balance for september is $30,500. Oneidas owner approaches the bank for a $100,000 loan to be made on September 2 and repaid on November 30. The banks 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	$ 250,000	$ 465,000	$ 510,000
Merchandise purchases	235,000	225,000	195,000
Cash payments
Salaries	31,400	31,400	31,400
Rent	8,000	8,000	8,000
Insurance	5,800	5,800	5,800
Repayment of loan			100,000
Interest on loan	1,000	1,000	1,000

All sales are on credit where 74% of credit sales are collected in the month following the sale, and the remaining 26% collected in the second month following the sale. All merchandise is purchased on credit; 84% of the balance is paid in the month following a purchase, and the remaining 16% 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.

ONEIDA COMPANY Schedule of Cash Receipts from Sales September October November $ 250,000 $ 465,000 $ 510,000 Sales Cash receipts from: Prior period sales Two periods prior sales Total cash receipts $ 0 0 $ 0 ONEIDA COMPANY Schedule of Cash Payments for Direct Materials September October November Materials purchases $ 235,000 $ 225,000 $ 195,000 Cash payments for Prior period purchases Two periods prior purchases Total cash payments $ 0 0 $ 0 ONEIDA COMPANY Cash Budget September October $ 30,500 $ 106,100 November Beginning balance $ 70,700 Total cash available 30,500 106,100 70,700 Less: Cash payments for 0 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan Ending cash balance

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