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 July August Sales $ 97,000 120,000 134,000 130,000 Purchases $ 68,000 $5,000 111,000 72,000 Cash Expenses Paid $ 18,000 24,500 33,500 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, 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: 1. Determine budgeted cash collections for July and August 2. Determine budgeted cash payments for July and August your answers in the tabs below.
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 July August Sales $ 97,000 120,000 134,000 130,000 Purchases $ 68,000 $5,000 111,000 72,000 Cash Expenses Paid $ 18,000 24,500 33,500 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, 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: 1. Determine budgeted cash collections for July and August 2. Determine budgeted cash payments for July and August your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
$ 97,000
120,000
134,000
130,000
Purchases
$ 65,000
$5,000
111,000
72,000
Cash Expenses
Paid
$ 18,000
24,500
33,500
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, 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:
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.
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