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 45 percent paid in the month of purchase and 55 percent paid the following month.

1. Determine budgeted cash collections for July and August.

2. Determine budgeted cash payments for July and August.

$ Month May June July August Cash Expenses Sales Purchases Paid 97,000 $ 67,000 $ 18,000 118,000 91,000 25,500 131,000 120,000 33,000 125,000 72,000 32,900