Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to ndividuals 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 $ 99,000 118,000 135,000 132,000 Purchases $ 63,000 89,000 115,000 72,000 Cash Expenses Paid $ 22,000 29,000 36,000 32,200 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 55 percent paid in the month of purchase and 45 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 ndividuals 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 $ 99,000 118,000 135,000 132,000 Purchases $ 63,000 89,000 115,000 72,000 Cash Expenses Paid $ 22,000 29,000 36,000 32,200 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 55 percent paid in the month of purchase and 45 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
Problem 1Q
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![**Martin Clothing Company: Cash Budget Analysis**
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 | Sales | Purchases | Cash Expenses Paid |
|---------|---------|-----------|--------------------|
| May | $99,000 | $63,000 | $22,000 |
| June | 118,000 | 89,000 | 29,000 |
| July | 135,000 | 115,000 | 36,000 |
| August | 132,000 | 72,000 | 32,200 |
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 55 percent paid in the month of purchase and 45 percent paid the following month.
**Required:**
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
**Instructions:**
Complete this question by entering your answers in the tabs below.
*Determine budgeted cash collections for July and August.*
*Note: Round your intermediate calculations and final answers to the nearest whole dollar.*
| | July | August |
|----------------|------|--------|
| Budgeted Cash Collections | | |
[Navigation tabs for input: "Required 1" and "Required 2"]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ff92c91-ab1c-4d03-9942-0c16f66602ec%2F98206a06-2f73-473b-a04a-50fc56b387ac%2Futyald_processed.png&w=3840&q=75)
Transcribed Image Text:**Martin Clothing Company: Cash Budget Analysis**
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 | Sales | Purchases | Cash Expenses Paid |
|---------|---------|-----------|--------------------|
| May | $99,000 | $63,000 | $22,000 |
| June | 118,000 | 89,000 | 29,000 |
| July | 135,000 | 115,000 | 36,000 |
| August | 132,000 | 72,000 | 32,200 |
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 55 percent paid in the month of purchase and 45 percent paid the following month.
**Required:**
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
**Instructions:**
Complete this question by entering your answers in the tabs below.
*Determine budgeted cash collections for July and August.*
*Note: Round your intermediate calculations and final answers to the nearest whole dollar.*
| | July | August |
|----------------|------|--------|
| Budgeted Cash Collections | | |
[Navigation tabs for input: "Required 1" and "Required 2"]
Transcribed Image Text:**Budgeted Cash Payments for July and August**
This section presents a table designed to calculate budgeted cash payments for the months of July and August.
**Table Structure:**
- The table is divided into two main columns under the header, each representing a different month:
- **July**
- **August**
- There is one main category for each month:
- **Budgeted Cash Payments**: This row is intended for inputting the budgeted cash payments for each given month.
The cells beneath "July" and "August" provide space for the respective budget figures to be entered.
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