Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Cash Expenses Paid Month May June July Sales $ 91,000 123,000 137,000 Purchases $ 62,000 87,000 $ 18,000 27,500 116,000 127,000 76,000 33,250 29,400 August The majority of Martin's sales (60 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 Martin's purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cash payments for July and August. July August Budgeted Cash Payments $ 132,275 $ 93,200 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: Cash Expenses Paid Month May June July Sales $ 91,000 123,000 137,000 Purchases $ 62,000 87,000 $ 18,000 27,500 116,000 127,000 76,000 33,250 29,400 August The majority of Martin's sales (60 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 Martin's purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cash payments for July and August. July August Budgeted Cash Payments $ 132,275 $ 93,200
Expert Answer:
Answer rating: 100% (QA)
Lets calculate the budgeted cash collections and cash payments for July and August Budgeted Cash Col... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
Students also viewed these accounting questions
-
Suppose you have a long position in the stock now. How would you hedge against price declines for a one-year period, using puts, calls, and combinations of options? Devise two different option...
-
Briefly describe the different taxonomic aids.
-
You are provided with a stuffed rabbit and a dried leaf. Which taxonomic aid will you choose to store them?
-
The pressure at the bottom of a swimming pool is evenly distributed. Suppose we look at a cast iron plate of 7272 kg lying on the ground with an area of 100 m2. What is the average pressure below...
-
What might explain low levels of employee satisfaction in recent years?
-
A mechanical system is shown in Figure P2.17, which is subjected to a known displacement x3(t) with respect to the reference, (a) Determine the two independent equations of motion. (b) Obtain the...
-
Suppose you are considering an investment that grew by 32 percent across a five-year holding period. If you wanted to state this rate of return as an effective annual rate (that is, with annual...
-
Kinnaird Company has gathered the following information. Units in beginning work in process ........... 20,000 Units started into production ............ 72,000 Units in ending work in process...
-
beale reports net invome of $50000 anf cost of goods sold of $300000 Beale's gross profit rate was 60% net sales were: 1) $500000 2) $750000 3) $800000 4) $550000
-
Write an essay which will compare and contrast Plato vs. Aristotle from only one perspective, not in general. This is important, again this is not a general comparison essay, you need to compare and...
-
Talia Jackson, head of Human Resources with Blue Diamond Insurance, recently planned an awards lunch for the 50 top-performing insurance agents in the region. In previous years, the insurance company...
-
What role does the general will play in Jean Jacques Rousseau political thought, and how might it be applicable to modern ideas of governance and leadership in academic organizations?
-
Explain the principles of localized corrosion mechanisms, such as pitting and crevice corrosion, and discuss the strategies employed in corrosion engineering to mitigate these forms of degradation in...
-
Al and Marsha Jones just had their first child. Marsha had a perfectly normal pregnancy and their son appears, at birth, to be perfectly normal. It is quite a surprise when the doctor calls them a...
-
Mary's Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues $1,650,000 $900,000 $5,800,000 Current...
-
How will transparency within the manufacturing /distribution supply chain improve real time management of SMEs? NB: Develop five questionnaires and five interview questions for the above.
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
October 20X1, Little Raven plc issued 50,000 debentures, with a par value of 100 each, to investors at 80 each.The debentures are redeemable at par on 30 September 20X6 and have a coupon rate of 6%,...
-
On 1 October year 1, RPS plc issued one million 1 5% redeemable preference shares. The shares were issued at a discount of 50,000 and are due to be redeemed on 30 September Year 5. Dividends are paid...
-
(a) Who are considered to be the potential users of financial reports? (b) What do you consider to be their information needs? (c) How would you expect a consideration of user needs to influence...
Study smarter with the SolutionInn App