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 June July August Cash Expenses Sales Purchases Paid 93,000 $ 64,000 $ 24,000 117,000 87,000 26,500 137,000 114,000 33,000 133,000 72,000 29,400 The majority of Martin's sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 30 percent are collected in the month of sale and 70 percent are collected in the following month. All of Martin's purchases are on account with 45 percent paid in the month of purchase and 55 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

Answer 1

		117,000	137,000	133,000
		June	July	August
Cash sales		81900	95900	93100
credit sales		35100	41100	39900
		117000	137000	133000
Req 1		Cash collection
			July	August
Cash sales			95900	93100
Credit sales
June	(35100*70%)		24570
July	(41,100*30%;70%)		12330	28770
Aug	(39,900*30%)			11970
Budgeted cash collections			132800	133840	answer
Req 2		Cash payment
			July	August
purchases
June	(87000*55%)		47850
July	(114000*45%;55%)		51300	62700
Aug	(72000*45%)			32400
Cash expenes			33,000	29,400
Budgeted cash payments			132150	124500		answer