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 Sales $ 99,000 118,000 138,000 129,000 Purchases $ 68,000 89,000 117,000 73,000 Cash Expenses Paid $ 23,000 28,000 34,500 32,900 The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
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 Sales $ 99,000 118,000 138,000 129,000 Purchases $ 68,000 89,000 117,000 73,000 Cash Expenses Paid $ 23,000 28,000 34,500 32,900 The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine budgeted cash collections for July and August.
Note: Round your intermediate calculations and final answers to nearest whole dollar.
August
Budgeted Cash Collections
July
Required 1 Required 2
< Required 1
The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Complete this question by entering your answers in the tabs below.
Budgeted Cash Payments
Determine budgeted cash payments for July and August.
July
August
Required 2 >
< Required 1
Required 2 >
![E8-18 (Algo) Preparing Cash Receipts and Cash Payments Budgets [LO 8-4]
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
Sales
$ 99,000
118,000
138,000
129,000
Purchases
$ 68,000
89,000
117,000
73,000
Cash Expenses
Paid
$ 23,000
28,000
34,500
32,900
The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Determine budgeted cash payments for July and August.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2add2073-e493-4d8e-b5ad-5a4b19fe039f%2F0381f738-9aed-4bee-9781-9aa4d1da0a4f%2Fhi5jqa_processed.png&w=3840&q=75)
Transcribed Image Text:E8-18 (Algo) Preparing Cash Receipts and Cash Payments Budgets [LO 8-4]
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
Sales
$ 99,000
118,000
138,000
129,000
Purchases
$ 68,000
89,000
117,000
73,000
Cash Expenses
Paid
$ 23,000
28,000
34,500
32,900
The majority of Martin's sales (60 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 50 percent paid in the month of purchase and 50 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Determine budgeted cash payments for July and August.
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