Budgeting -

Compute Cash Receipts & Payments

...Thanks!

Aqua Pure is a distributor of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Pure will budget for September. The solution to one item may depend on the answer to an earlier item. The company expenses $5,000 per month for insurance on its fleet of delivery vehicles. The insurance premium is paid semi-annually in September and March. Management expects to sell 7,500 cases of water in August and 9,200 in Septet Each case sells for $12. 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. The company pays commissions and other expenses of $4,200 per month A depreciation expense of $4,500 is recognized each month. Aqua Pure declares $100,000 in dividends to shareholders of record as of September 14. The payment date for the dividends declared in Part e is September 30