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 Paid Month May June July August Sales $ 94,000 117,000 139,000 Purchases $ 69,000 93,000 $ 20,000 125,000 25,500 35,250 32,200 115,000 76,000 The majority of Martin's sales (60 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 60 percent paid in the month of purchase and 40 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. Required 1 Required 2 Determine budgeted cash collections for July and August. Note: Round your intermediate calculations and final answers to nearest whole dollar. Budgeted Cash Collections July 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 Paid Month May June July August Sales $ 94,000 117,000 139,000 Purchases $ 69,000 93,000 $ 20,000 125,000 25,500 35,250 32,200 115,000 76,000 The majority of Martin's sales (60 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 60 percent paid in the month of purchase and 40 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. Required 1 Required 2 Determine budgeted cash collections for July and August. Note: Round your intermediate calculations and final answers to nearest whole dollar. Budgeted Cash Collections July August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
Paid
Month
May
June
July
August
Sales
$ 94,000
117,000
139,000
Purchases
$ 69,000
93,000
$ 20,000
125,000
25,500
35,250
32,200
115,000
76,000
The majority of Martin's sales (60 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 60 percent paid in the month of purchase and 40 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.
Required 1 Required 2
Determine budgeted cash collections for July and August.
Note: Round your intermediate calculations and final answers to nearest whole dollar.
Budgeted Cash Collections
July
August
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