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 $ 90,000 117,000 133,000 128,000 Purchases $ 63,000 94,000 113,000 73,000 The majority of Martin's sales (75 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 45 percent are collected in the month of sale and 55 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: Cash Expenses Paid $ 24,000 24,500 35,250 31,500 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. Budgeted Cash Collections Determine budgeted cash collections for July and August. Note: Round your intermediate calculations and final answers to nearest whole dollar. July August < Required 1 Required 2 >
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 $ 90,000 117,000 133,000 128,000 Purchases $ 63,000 94,000 113,000 73,000 The majority of Martin's sales (75 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 45 percent are collected in the month of sale and 55 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: Cash Expenses Paid $ 24,000 24,500 35,250 31,500 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. Budgeted Cash Collections Determine budgeted cash collections for July and August. Note: Round your intermediate calculations and final answers to nearest whole dollar. July August < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Required 1 Required 2
Determine budgeted cash payments for July and August.
July
August
Budgeted Cash Payments
< Required 1
Required 2 >
Transcribed Image Text: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
$ 90,000
117,000
133,000
128,000
Purchases
$ 63,000
94,000
113,000
73,000
The majority of Martin's sales (75 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 45
percent are collected in the month of sale and 55 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:
Cash Expenses
Paid
$ 24,000
24,500
35,250
31,500
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.
Budgeted Cash Collections
Determine budgeted cash collections for July and August.
Note: Round your intermediate calculations and final answers to nearest whole dollar.
July
August
Required 1
Required 2 >
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