37 ces 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 May June July August Sales $ 97,000 124,000 140,000 125,000 Purchases $ 65,000 89,000 119,000 76,000 Cash Expenses Paid $ 19,000 26,500 34,500 32,900 The majority of Martin's 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 Martin's purchases are on account with 45 percent paid in the month of purchase and 55 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
37 ces 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 May June July August Sales $ 97,000 124,000 140,000 125,000 Purchases $ 65,000 89,000 119,000 76,000 Cash Expenses Paid $ 19,000 26,500 34,500 32,900 The majority of Martin's 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 Martin's purchases are on account with 45 percent paid in the month of purchase and 55 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 14CE
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ces
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
May
June
July
August
Sales
$ 97,000
124,000
140,000
125,000
Purchases
$ 65,000
89,000
119,000
76,000
Cash Expenses
Paid
$ 19,000
26,500
34,500
32,900
The majority of Martin's 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 Martin's purchases are on
account with 45 percent paid in the month of purchase and 55 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
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