Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Agua Pure is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Pure will budget

Agua Pure is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Pure 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.)
(Click the icon to view the items.)
a. Management expects to sell equipment that cost $16,000 at a gain of $8,000. Accumulated depreciation on this equipment is $4,000.
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 $14. Cash sales average 20% 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 collected 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 $4,300 each month. Commissions and other selling expenses average 10% of sales. Agua Pure 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
More info
a. Management expects to sell equipment that cost $16,000 at a gain of $8,000. Accumulated depreciation on this equipment is $4,000.
b. Management expects to sell 7,600 cases of water in August and 9,500 cases in September. Each case sells for $14. Cash sales average 20% 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 collected the following month.
c. The company pays rent and property taxes of $4,300 each month. Commissions and other selling expenses average 10% of sales. Agua Pure pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Smart Approach

Authors: Mary Carey, Jane Towers-Clark, Cathy Knowles

2nd Edition

0199674914, 978-0199674916

More Books

Students also viewed these Accounting questions

Question

=+ What is Pats EVwPI?

Answered: 1 week ago