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.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...
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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
$ 99,000
118,000
135,000
132,000
Purchases
$ 63,000
89,000
115,000
72,000
Required 1 Required 2
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.
Cash Expenses
Paid
$ 22,000
Complete this question by entering your answers in the tabs below.
Budgeted Cash Collections
29,000
36,000
32,200
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 >
Transcribed Image Text:Determine budgeted cash payments for July and August.
July
Budgeted Cash Payments
August
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