E9-32A (book/static) of bottled water. For each item below, compute the amount o

Question

E9-32A (book/static) of bottled water. For each item below, compute the amount of cash receipts or payments Aqua Pure wll budget for September The solution to one item may depend on the arswer to an earlier item (Click the icon to view the items.) fl here is not a cash receipt or payment, enter "Or. Round your answers to the nesarest whole dollar) a. The company expenses $5,000 per month for insurance on its fleet of delivery vehicles. The insurance There premium is paid semiannually in September and March. Yfor insurance. The amount would bes More I Xi a. The company expenses $5.000 per month for insurance on its fleet of delivery vehices The insurance premium is pad semiannually in September and March b. Management expects to sell 7,500 cases of water in August and 9,200 n September 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 morth of sale. with the balano collected the following month c. The company pays commissions and other expenses of $4,200 per morth d. A depreciation expense of $4,500 is recognized each month e. Aqua Pure declares $100,000 in dividends to shareholders of record as of September 14 t. The payment date for the dividends declared in Part e is September 30 Print Done

Explanation / Answer

Requirement for Q1 not clear 1 Particulars October November December January Sales 887000 952000 1045000 938000 Particulars October November December January Cash Sales(24% of Sales) 212880 228480 250800 225120 Credit Sales(76% of Sales) 674120 723520 794200 712880 Total Sales 887000 952000 1045000 938000 2 Cash Collection Budget: December January December January Cash Sales 250800.00 225120.00 Collection of Credit Sales: of Oct Month Sales 40447.20 (674120*6%) of Nov Month Sales 463052.80 43411.20 (723520*64%) (723520*6%) of Dec Month Sales 222376.00 508288.00 (794200*28%) (794200*64%) of Jan Month Sales 199606.40 (712880*28%) Total 976676.00 976425.60

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