E8-18 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:

The majority of Martins sales (75 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 35 percent are collected in the month of sale and 65 percent are collected in the following month. All of Martins 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.)

2. Determine budgeted cash payments for July and August.

Cash Expenses Paid Month May June Sales Purchases $ 100,000 $70,000 $19,000 25,000 38,250 29,400 119,000 135,000 129,000 93,000 112,000 74,000 Ul August