Master Budgets

x E22A-35 (similar to) Agua Bravo is a distributor of ount of cash receipts or payments Agua Bravo 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.) i (Click the icon to view the items.) a. Management expects to sell equi st $19,000 at a gain of $9,000. A ciation on this equipment is $5,000. a. The amount of cash re ment is $ 23,000 b. Management expects to sell 7,900 cases of water in August and 9,200 case ember. Each case sells for $17. 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 collected the following month. The amount of cash receipts the company will budget for the collection of sale revenue is $ i More Info X . Management expects to sell equipment that cost $19,000 at a gain of $9,000. Accumulated depreciation on this equipment is $5,000. b. Management expects to sell 7,900 cases of water in August and 9,200 cases in September. Each case sells for $17. 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 collected the following month. . The company pays rent and property taxes of $4,200 each month. Commissions and other selling expenses average 30% of sales. Agua Bravo pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month. Print Done