Agua H20 is a distributor of bottled water. For each of the items, compute the a

Question

Agua H20 is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua H20 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 $18,000 at a gain of $5,000. Accumulated depreciation on this equipment is $5,000 a. The amount of cash receipts the company will budget for the sale of the equipment is S b Management expects o sell 7 700 cases o water in August and 9 20 cases in September. Each case sells or 17. Cash sales average 20% of tal 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 S c. The company pays rent and property ta es o $4 200 each month. Commissions and other se ing expenses average 2 0% of sales, Agua pays one- a o commi sions and the eling expenses n 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 S More Info a. Management expects to sell equipment that cost $18,000 at a gain of $5,000 Accumulated depreciation on this equipment is $5,000. b. Management expects to sell 7,700 cases of water in August and 9,200 cases in September Each case sells for $17. 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 $4,200 each month Commissions and other selling expenses average 20% of sales. Agua H2O pays one-half of commissions and other selling expenses in the month incurred, with the balance paid the following month. Print Done

Explanation / Answer

a)the amount of cash receipt for the sale of equpipment is $18000

B)the amount of cash receipt from sale in september month =7700*80%=credit sale of aug i.e $6160

amount of cash collected from credit sale of august month in september month=$6160*1/4=$1540*17=$26180

amount of cash sales in september month +9200*20%=1840*17=$31280

Cash collected of sale of september month in september month>

c) amount of payment=$4200+7700*20%=1540*1/2=770+9200*20%*1/2=920

total payment=$5890

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.