Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 6.00

Agua Pure

Agua Pure is a distributor of bottled water.
Requirement
1. For each of the Items a. through c., compute the amount of cash receipts or payments Agua Pure will budget for September. The solution to one item may depend on the answer to an earlier item.
a. Management expects to sell equipment that cost $20,000 at a gain of $5,000. Accumulated depreciation on this equipment is $5,000.
b. Management expects to sell 7,300 cases of water in August and 9,800 in September. Each case sells for $14. Cash sales average 10% 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 $4,300 each month. Commissions and other selling expenses average 20% of sales. Agua Pure pays one-half of commissions and other selling expenses in the month incurred, with the balance paid in the following month.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 09:08 PM My Price 6.00

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