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 $ 120,000 $ 90,000 $ 24,000

June 115,000 95,000 31,000

July 160,000 150,000 38,250

August 145,000 80,000 34,700 T

he majority of Martins sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martins purchases are on account with 55 percent paid in

1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.