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 $ 91,000 124,000 137,000 Purchases $ 61,000 85,000 $ 19,000 28,000 131,000 116,000 79,000 34,500 29,400 The majority of Martin's sales (75 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 45 percent paid in the month of purchase and 55 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
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 $ 91,000 124,000 137,000 Purchases $ 61,000 85,000 $ 19,000 28,000 131,000 116,000 79,000 34,500 29,400 The majority of Martin's sales (75 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 45 percent paid in the month of purchase and 55 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 14CE
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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
124,000
137,000
Purchases
$ 61,000
85,000
$ 19,000
28,000
131,000
116,000
79,000
34,500
29,400
The majority of Martin's sales (75 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 45 percent paid in the month of purchase and 55 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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