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Type answer please Aqua Bravo is a distributor of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Bravo
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Aqua Bravo is a distributor of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Bravo will budget for September. The solution to one item may depend on the answer to an earlier item. a. The company expenses $5,900 per month for insurance on its fleet of delivery vehicles. The insurance premium is paid semiannually in September and March. (For an entry with a $0 balance, make sure to enter "0" in the appropriate input field.) Will there be a cash payment or cash receipt for insurance? What would be the amount? b. Management expects to sell 7, 100 cases of water in August and 9,000 in September. Each case sells for $19. 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. (For an entry with a $0 balance, make sure to enter "0" in the appropriate input field. Round your answer to the nearest whole dollar.) Will there be a cash payment or cash receipt for the collection of sale revenue? What would be the amount? c. The company pays commissions and other expenses of $4,800 per month. (For an entry with a $0 balance, make sure to enter "0" in the appropriate input field.) Will there be a cash payment or cash receipt for commissions and other expenses? What would be the amount? d. A depreciation expense of $4,500 is recognized each month. (For an entry with a $0 balance, make sure to enter "0" in the appropriate input field.) Will there be a cash payment or cash receipt for depreciation expense? What would be the amount? e. Aqua Bravo declares $108,000 in dividends to shareholders of record as of September 14. (For an entry with a $0 balance, make sure to enter "0" in the appropriate input field.) Will there be a cash payment or cash receipt for the declaration of dividends? What would he the amalintoStep by Step Solution
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