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Oneida Company's operations began in August. August sales were $150,000 and purchases were $120,000. The beginning cash balance for september is $34,500. Oneida's owner approaches the bank for a $100,000 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 Merchandise purchases. Cash payments Salaries Rent Insurance Repayment of loan. Interest on loan September $ 260,000 225,000 30,000 8,000 5,400 1,000 October $425,000 210,000 30,000 8,000 5,400 1,000 November $ 450,000 201,000 30,000 8,000 5,400 100,000 1,000 All sales are on credit where 76% of credit sales are collected in the month following the sale, and the remaining 24% collected in the second month following the sale. All merchandise is purchased on credit; 86% of the balance is paid in the month following a purchase, and the remaining 14% 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's operations began in August. August sales were $150,000 and purchases were $120,000. The beginning cash balance for september is $34,500. Oneida's owner approaches the bank for a $100,000 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 Merchandise purchases. Cash payments Salaries Rent Insurance Repayment of loan. Interest on loan September $ 260,000 225,000 30,000 8,000 5,400 1,000 October $425,000 210,000 30,000 8,000 5,400 1,000 November $ 450,000 201,000 30,000 8,000 5,400 100,000 1,000 All sales are on credit where 76% of credit sales are collected in the month following the sale, and the remaining 24% collected in the second month following the sale. All merchandise is purchased on credit; 86% of the balance is paid in the month following a purchase, and the remaining 14% 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 1 Required 2 Required 3 Prepare the schedule of cash receipts from sales. Sales Cash receipts from: Prior period sales Two periods prior sales Total cash receipts Required 1 Required 2 Materials purchases Cash payments for Prior period purchases Two periods prior purchases Total cash payments Required 1 Required 2 Beginning balance Prepare the schedule of cash payments for direct materials. Prepare the cash budget. ONEIDA COMPANY Schedule of Cash Receipts from Sales September Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan Ending cash balance Required 3 ONEIDA COMPANY Schedule of Cash Payments for Direct Materials Required 3 $ $ < Required 1 $ $ $ < Required 1 ONEIDA COMPANY Cash Budget 260,000 $ September 34,500 November September 225,000 $ 210,000 $ 201,000 0 $ 0 $ October Required 2 October October 425,000 100,900 0 November 0 $ 0 $ 34,500 $ 100,900 $ 79,800 Required 2 > Required 3 > November 450,000 79,800 0 0 0
Transcribed Image Text:Required 1 Required 2 Required 3 Prepare the schedule of cash receipts from sales. Sales Cash receipts from: Prior period sales Two periods prior sales Total cash receipts Required 1 Required 2 Materials purchases Cash payments for Prior period purchases Two periods prior purchases Total cash payments Required 1 Required 2 Beginning balance Prepare the schedule of cash payments for direct materials. Prepare the cash budget. ONEIDA COMPANY Schedule of Cash Receipts from Sales September Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan Ending cash balance Required 3 ONEIDA COMPANY Schedule of Cash Payments for Direct Materials Required 3 $ $ < Required 1 $ $ $ < Required 1 ONEIDA COMPANY Cash Budget 260,000 $ September 34,500 November September 225,000 $ 210,000 $ 201,000 0 $ 0 $ October Required 2 October October 425,000 100,900 0 November 0 $ 0 $ 34,500 $ 100,900 $ 79,800 Required 2 > Required 3 > November 450,000 79,800 0 0 0
Oneida Company's operations began in August. August sales were $150,000 and purchases were $120,000. The beginning cash balance for september is $34,500. Oneida's owner approaches the bank for a $100,000 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 Merchandise purchases Cash payments Salaries Rent Insurance Repayment of loan Interest on loan September $ 260,000 225,000 30,000 8,000 5,400 1,000 October $ 425,000 210,000 30,000 8,000 5,400 1,000 November $ 450,000 201,000 30,000 8,000 5,400 100,000 1,000 All sales are on credit where 76% of credit sales are collected in the month following the sale, and the remaining 24% collected in the second month following the sale. All merchandise is purchased on credit; 86% of the balance is paid in the month following a purchase, and the remaining 14% 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.
Transcribed Image Text:Oneida Company's operations began in August. August sales were $150,000 and purchases were $120,000. The beginning cash balance for september is $34,500. Oneida's owner approaches the bank for a $100,000 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 Merchandise purchases Cash payments Salaries Rent Insurance Repayment of loan Interest on loan September $ 260,000 225,000 30,000 8,000 5,400 1,000 October $ 425,000 210,000 30,000 8,000 5,400 1,000 November $ 450,000 201,000 30,000 8,000 5,400 100,000 1,000 All sales are on credit where 76% of credit sales are collected in the month following the sale, and the remaining 24% collected in the second month following the sale. All merchandise is purchased on credit; 86% of the balance is paid in the month following a purchase, and the remaining 14% 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.
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