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: Cash Expenses Paid Month May June July August Sales $ 91,000 123,000 137,000 127,000 Purchases $ 62,000 87,000 116,000 76,000 $ 18,000 27,500 33,250 29,400 The majority of Martin's sales (60 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 25 percent are collected in the month of sale and 75 percent are collected in the following month. All of Martin's 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cash payments for July and August. July August Budgeted Cash Payments $ 132,275 $ 93,200
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: Cash Expenses Paid Month May June July August Sales $ 91,000 123,000 137,000 127,000 Purchases $ 62,000 87,000 116,000 76,000 $ 18,000 27,500 33,250 29,400 The majority of Martin's sales (60 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 25 percent are collected in the month of sale and 75 percent are collected in the following month. All of Martin's 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cash payments for July and August. July August Budgeted Cash Payments $ 132,275 $ 93,200
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 14CE
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Question
Transcribed Image Text: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:
Cash Expenses
Paid
Month
May
June
July
August
Sales
$ 91,000
123,000
137,000
Purchases
$ 62,000
87,000
$ 18,000
27,500
127,000
33,250
29,400
116,000
76,000
The majority of Martin's sales (60 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 25
percent are collected in the month of sale and 75 percent are collected in the following month. All of Martin's 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.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine budgeted cash payments for July and August.
July
August
Budgeted Cash Payments
$ 132,275
$
93,200
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