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 $ 90,000 123,000 137,000 128,000 Purchases $ 70,000 92,000 114,000 79,000 Cash Expenses Paid $ 21,000 29,000 33,750 29,400 The majority of Martin's sales (65 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 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.
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 $ 90,000 123,000 137,000 128,000 Purchases $ 70,000 92,000 114,000 79,000 Cash Expenses Paid $ 21,000 29,000 33,750 29,400 The majority of Martin's sales (65 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 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.
Chapter1: Financial Statements And Business Decisions
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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
Sales
$ 90,000
123,000
137,000
128,000
Purchases
$ 70,000
92,000
114,000
79,000
Cash Expenses
Paid
$ 21,000
29,000
33,750
29,400
The majority of Martin's sales (65 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 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.
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