Question
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
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 $ 98,000 $ 61,000 $ 18,000 June 120,000 91,000 29,000 July 132,000 111,000 34,250 August 133,000 77,000 30,100 The majority of Martins sales (70 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 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.)
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