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During the last week of August, Muir Company's owner approaches the bank for a $106,500 loan to be made on September 2 and repaid on November 30 with annual interest of 16%, for an interest cost of $4,260. The owner plans to increase the store's inventory by $80,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Muir's ability to repay the loan and asks the owner to forecast the store's November 30 cash position. On September 1, Muir is expected to have a $4,500 cash balance, $143,000 of accounts receivable, and $115,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow:

Budgeted Figures* September October November
Sales $320,000 $405,000 $450,000
Merchandise purchases 230,000 200,000 200,000
Cash disbursements
Payroll 20,000 22,150 24,500
Rent 10,000 10,000 10,000
Other cash expenses 34,600 30,000 21,600
Repayment of bank loan 106,500
Interest on the bank loan 4,260

* Operations began in August; August sales were $295,000 and purchases were $120,000.

The budgeted September merchandise purchases include the inventory increase. All sales are on account. The Company predicts that 28% of credit sales is collected in the month of the sale, 43% in the month following the sale, 23% in the second month, 5% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $126,850 of the $295,000 will be collected in September, $67,850 in October, and $14,750 in November. All merchandise is purchased on credit; 50% of the balance is paid in the month following a purchase, and the remaining 50% is paid in the second month. For example, of the $120,000 August purchases, $60,000 will be paid in September and $17,250 in October.

Required:
Prepare a cash budget for September, October, and November for Muir Company