Agua Clean is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Clean will budget for September. The solution to one item may depend on the answer to an earlier item. (Round your answers to the nearest whole dollar. AClick the icon to view the items.) a. Management expects to sell equipment that cost $18,000 at a gain of $2,000. Accumulated depreciation on this equipment is $11,000. a. The amount of cash receipts the company will budget for the sale of the equipment is b. Management expects to sell 7,600 cases of water in August and 9,500 cases in September. Each case sells for $12. Cash sales average 40% of total sales, and credit sales make up the rest. Three-fourths of credit sales are collected in the month of sale, with the balance cole the following month. b. The amount of cash receipts the company will budget for the collection of sale revenue is c. The company pays rent and property taxes of $4,500 each month. Commissions and other selling expenses average 20% of sales. Agua Clean pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month. c. The amount of cash payments for total expenses the company will budget for September is
Agua Clean is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Clean will budget for September. The solution to one item may depend on the answer to an earlier item. (Round your answers to the nearest whole dollar. AClick the icon to view the items.) a. Management expects to sell equipment that cost $18,000 at a gain of $2,000. Accumulated depreciation on this equipment is $11,000. a. The amount of cash receipts the company will budget for the sale of the equipment is b. Management expects to sell 7,600 cases of water in August and 9,500 cases in September. Each case sells for $12. Cash sales average 40% of total sales, and credit sales make up the rest. Three-fourths of credit sales are collected in the month of sale, with the balance cole the following month. b. The amount of cash receipts the company will budget for the collection of sale revenue is c. The company pays rent and property taxes of $4,500 each month. Commissions and other selling expenses average 20% of sales. Agua Clean pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month. c. The amount of cash payments for total expenses the company will budget for September is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Agua Clean is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Clean will budget for September. The solution to one item may depend on the answer to an earlier item. (Round your answers to the nearest whole dollar.)
AClick the icon to view the items.)
a. Management expects to sell equipment that cost $18,000 at a gain of $2,000. Accumulated depreciation on this equipment is $11,000.
a. The amount of cash receipts the company will budget for the sale of the equipment is
b. Management expects to sell7,600 cases of water in August and 9,500 cases in September. Each case sells for $12. Cash sales average 40% of total sales, and credit sales make up the rest. Three-fourths of credit sales are collected in the month of sale, with the balance collecte
the following month.
b. The amount of cash receipts the company will budget for the collection of sale revenue is
c. The company pays rent and property taxes of $4,500 each month. Commissions and other selling expenses average 20% of sales. Agua Clean pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month.
c. The amount of cash payments for total expenses the company will budget for September is
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