Month Sales Purchases Cash Expenses Paid May $ 97,000 $ 64,000 $ 23,000 June 119,000 92,000 28,000 July 131,000 115,000 33,500 August 125,000 71,000 30,100 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. Determine budgeted cash collections for July and August. Determine budgeted cash payments for July and August.
Month Sales Purchases Cash Expenses Paid May $ 97,000 $ 64,000 $ 23,000 June 119,000 92,000 28,000 July 131,000 115,000 33,500 August 125,000 71,000 30,100 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. Determine budgeted cash collections for July and August. Determine budgeted cash payments for July and August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Month | Sales | Purchases | Cash Expenses Paid |
|---|---|---|---|
| May | $ 97,000 | $ 64,000 | $ 23,000 |
| June | 119,000 | 92,000 | 28,000 |
| July | 131,000 | 115,000 | 33,500 |
| August | 125,000 | 71,000 | 30,100 |
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.
- Determine budgeted cash collections for July and August.
- Determine budgeted cash payments for July and August.
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