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	Sales		Purchases		Cash Expenses Paid
May	$	92,000	$	62,000	$	22,000
June		116,000		89,000		25,000
July		138,000		114,000		33,000
August		132,000		77,000		30,100

The majority of Martins sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 25 percent are collected in the month of sale and 75 percent are collected in the following month. All of Martins 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

	July	August
Budgeted Cash Collections

2. Determine budgeted cash payments for July and August.

	July	August
Budgeted Cash Payments