Question

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 $ Cash Expenses Paid $ 24,000 26,000 33,750 32,200 Sales Purchases 94,000 $ 64,000 124,000 88,000 132,000 111,000 125,000 78,000 June July August The majority of Martin's sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 25 percent are collected in the month of sale and 75 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. (Round your intermediate calculations and final answers to nearest whole dollar.) July August Budgeted Cash Collections 2. Determine budgeted cash payments for July and August. July August Budgeted Cash Payments

Answer 1

Amseses Caleulahon f budgehd caslcollechos eely audl Aug 3dly 85200 Aug 81250 132 00OX657IRE000X65 cash sales Credtsales $32,550 Greycox35s 11,550 $132,000x35.x257132p00x357x Jene sales Jaly sales 34,650 Aug &les $ID,938 125000x5x 257 Budgeted cas 126838 19900 Collectians e) calulale budge fad casl tor Ju and Aug guly Sune peeralase 35200 Aug July pearchape66600 000x 60 ",00ox40 46800 $78,000 x 60 $32,200 123,400 Aug purolase casl ex peutes 33750 Budgeledcash T$ 135,550 collectioud