E8-18 (Algo) Preparing Cash Receipts and Cash Payments Budgets (LO 8-4) 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 May Cash Expenses Sales Purchases Pald $ 91,000 $ 61,000 $ 21,000 120,000 91,000 25,500 130,000 116,000 33,000 130,000 78,000 29,400 June July August The majority of Martin's sales (70 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 60 percent paid in the month of purchase and 40 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August 2. Determine budgeted cash payments for July and August