Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially...
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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 May June July August Cash Expenses Sales Purchases Paid 91,000 $ 63,000 $ 20,000 120,000 94,000 24,500 130,000 119,000 37,000 127,000 77,000 30,800 The majority of Martin's sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 30 percent are collected in the month of sale and 70 percent are collected in the following month. All of Martin's 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. 2. Determine budgeted cash payments for July and August. July August Budgeted Cash Collections July August Budgeted Cash Payments
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