Martin Clothing Company is a retail company that sells hiking and other outdoor

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 weill 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 Month May June July August Sales Purchases Paid $ 93,000 67,000 $ 22,000 118,000 131,000 133,000 85,000 120,000 70,000 29,500 37,500 30,100 The majority of Martin's sales (65 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. (Round your intermediate calculations and final answers to nearest whole dollar.) itt?? Dulty August Budgeted Cash Collections 2. Determine budgeted cash payments for July and August. August Budgeted Cash Payments 4.

Explanation / Answer

1. Determination of Budgeted Cash Collection:

2. Determination of Budgeted Cash payments:

July August Cash Sales $131,000 x 65% = $85,150 $133,000 x 65% = $86,450 Cash received from current month sales $131,000 x 35% x 35%= $16,048 $133,000 x 35% x 35%= $16,293 Cash received from last month sales $118,000 x 35% x 65%= $26,845 $131,000 x 35% x 65%= $29,803 Budgeted Cash Collection $128,043 $132,545

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