Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially...
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Accounting
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year:
Month
Sales
Purchases
Cash Expenses Paid
May
$
92,000
$
66,000
$
20,000
June
125,000
89,000
29,000
July
137,000
112,000
34,250
August
127,000
77,000
33,600
The majority of Martins sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 35 percent are collected in the month of sale and 65 percent are collected in the following month. All of Martins purchases are on account with 45 percent paid in the month of purchase and 55 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. (Round your intermediate calculations and final answers to nearest whole dollar.)2. Determine budgeted cash payments for July and August.
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