Martin Clothing Company is a retail company that sells hiking

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 Sales Purchases Cash

Expenses

Paid  May$95,000    $66,000    $22,000      June 120,000     88,000     26,000      July 134,000     112,000     34,000      August 132,000     74,000     31,500

The majority of Martin’s sales (65 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 50 percent paid in the month of purchase and 50 percent paid the following month.

Required:

1.Determine budgeted cash collections for July and August.

July August

Budgeted Cash Collections:

2. Determine budgeted cash payments for July and August.

July August

Budgeted Cash Payments:

Here’s the SOLUTION

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