Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aqua Crisp is a distributor of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Crisp will budget

image text in transcribed

Aqua Crisp is a distributor of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Crisp will budget for September. The solution to one item may depend on the answer to an earlier item. (Click the icon to view the items.) (If there is not a cash receipt or payment, enter "0". Round your answers to the nearest whole dollar.) a. The company expenses $5,000 per month for insurance on its fleet of delivery vehicles. The insurance premium is paid semiannually in September and March. There will be cash payments for insurance. The amount would be $ 30000 b. Management expects to sell 7,200 cases of water in August and 9,300 in September. Each case sells for $20. Cash sales average 30% of total sales, and credit sales make up the rest. On average, three-fourths of credit sales are collected in the month of sale, with the balance collected the following month. There for the collection of sale revenue. The amount would be $ c. The company pays commissions and other expenses of $4,500 per month. There for commissions and other expenses. The amount would be $ per month. d. A depreciation expense of $3,500 is recognized each month. There for depreciation expense. The amount would be $ e. Aqua Crisp declares $101,000 in dividends to shareholders of record as of September 14. There for the declaration of dividends to shareholders. The amount would be $ f. The payment date for the dividends declared in Part e is September 30. There when the dividend payment date is September 30. The amount would be $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions

Question

Does discount on binds payable affect cash flow

Answered: 1 week ago