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

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Accounting

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 $ 91,000 $ 68,000 $ 19,000
June 120,000 95,000 26,000
July 138,000 113,000 35,750
August 127,000 79,000 32,200

The majority of Martins sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 45 percent are collected in the month of sale and 55 percent are collected in the following month. All of Martins purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month.

Required:

1. Determine budgeted cash collections for July and August.

2. Determine budgeted cash payments for July and August.

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