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:

The majority of Martin€™s sales (70 percent) are cash, but a few of the excursion companies€™ purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 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. Prepare a schedule of cash receipts for July and August.
2. Prepare a schedule of cash payments for July andAugust.

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Month Sales Purchases Cash Expenses Paid May June July August $120,000 115,000 160,000 145,000 90,000 95,000 150,000 80,000 $24,000 31,000 38,250 34,700