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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: Cash Expenses Month May June Sales Purchases Paid $ 92,000 $ 66,000 $ 20,000 July August 119,000 136,000 95,000 28,500 113,000 33,500 130,000 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, 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 40 percent paid in the month of purchase and 60 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. July August Budgeted Cash Collections $ 23,450 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: Cash Expenses Month May June Sales Purchases Paid $ 92,000 $ 66,000 $ 20,000 July August 119,000 136,000 95,000 28,500 113,000 33,500 130,000 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, 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 40 percent paid in the month of purchase and 60 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. July August Budgeted Cash Collections $ 23,450 2. Determine budgeted cash payments for July and August.

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 7E
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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: Cash Expenses Month May June Sales Purchases Paid $ 92,000 $ 66,000 $ 20,000 July August 119,000 136,000 95,000 28,500 113,000 33,500 130,000 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, 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 40 percent paid in the month of purchase and 60 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. July August Budgeted Cash Collections $ 23,450 2. Determine budgeted cash payments for July and August.
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: Cash Expenses Month May June Sales Purchases Paid $ 92,000 $ 66,000 $ 20,000 July August 119,000 136,000 95,000 28,500 113,000 33,500 130,000 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, 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 40 percent paid in the month of purchase and 60 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. July August Budgeted Cash Collections $ 23,450 2. Determine budgeted cash payments for July and August.
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