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
$91,000
$61,000
$20,000
June
123,000
88,000
27,500
July
136,000
119,000
36,500
August
129,000
74,000
30,100
The majority of Martins sales (75 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martins purchases are on account with 55 percent paid in the month of purchase and 45 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.)
July
August
Budgeted Cash Collections
2. Determine budgeted cash payments for July and August.
July
August
Budgeted Cash Payments
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