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i safari File Edit View History Bookmarks Window Help ? ? 46% L- ? ??))) Tue Jun 19 7:30 PM Alex C ezto.mheducation.com Home - alamo.edu Chapter 8 Exercises 12, e 6.66 points 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 Purchases $93,000 62,000 21,000 28,500 34.750 33,600 121,000 139,000 135,000 93,000 120,000 78,000 The majority of Martin\'s sales (60 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 45 percent are collected in the month of sale and 55 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. (Round your intermediate calculations and final answers to nearest whole dollar.) July August Budgeted Cash Collections 2. Determine budgeted cash payments for July and August. July August Budgeted Cash Payments popcorntime ap

Solution

SOLUTION

1. Budgeted cash collections-

2. Budgeted cash payment-

	July ($)	August ($)
Cash sales (139,000*60%),(136,000*60%)	83,400	81,600
Credit sales:
June sales: (121,000*40%*55%)	26,620
July sales: (139,000*40%*45%),(139,000*40%*55%)	25,020	30,580
August sales: (136,000*40%*45%)		24,480
Total cash collections	135,040	136,660