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 $ $95,000$ $ $65,000$ $ $23,000$

June $118,00089,00029,000$

July $133,000114,00036,750$

August $130,00073,00032,200$

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 $45$ percent paid in the month of purchase and $55$ percent paid the following month.

 

 

Required:

Determine budgeted cash collections for July and August.

Determine budgeted cash payments for July and August.

Answer rating: 100% (QA)

Answer To determine the budgeted cash collections for July and August we need to analyze the g... View the full answer