Question

$ Month May June July August Cash Expenses Sales Purchases Paid 92,000 $ 68,000 $ 23,000 119,000 85,800 29,000 132,000 117,000 32,750 125,000 73,000 31,500 The majority of Martin's sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 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. Complete this question by entering your answers in the tabs below. . Required 1 Required 2 Determine budgeted cash collections for July and August. (Round your intermediate calculations and final answers to nearest whole dollar.) July August Budgeted Cash Collections Required 2 >

Answer 1

May June July August Sales Revenue 92000 119000 132000 125000 Total Cash Receipts Credit Sales(30%) 27600 35700 39600 37500 Current Month Collection @ 40% 11040 14280 15840 15000 Collection of next month @60% L 1656021420 23760 Cash sales (70%) 64400 | 83300 92400 87500 Total Cash Receipts 75440 114140 129660 126260 Answers July 129660 August 126260 Budgeted Cash Collections May June July August Purchases 68000 85000 117000 73000 Total Cash Payments Cash Expenditure 23000 29000 32750 31500 Current Month :Payments @ 55% 374004675064350 40150 Collection of next month @45% 30600 38250 | 52650 Total Cash Receipts 60400 106350 135350 124300 Answers July August 124300 Budgeted Cash Payment 135350