Question 4, part 2 Agua Cool is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Cool will budget for September. The solution to one item may depend on the answer to an earlier item. (Round youranswers to the nearest whole dollar.)A (Click the icon to view the items.)a. Management expects to sell equipment that cost $14,000 at a gain of $7,000. Accumulated depreciation on this equipment is $5,000.The amount of cash receipts the company will budget for the sale of the equipment is$16,000а.b. Management expects to sell 7,100 cases of water in August and 9,000 cases in September. Each case sells for $14. Cash sales average 20% of total sales, and credit sales make up the rest. Three-fourths of credit sales are collected in themonth 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

Cash budget: It is a budget that represents the future cash of an entity over a defined period of…

Agua Cool is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Cool 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 $14,000 at a gain of $7,000. 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 16,000 b. Management expects to sell 7,100 cases of water in August and 9,000 cases in September. Each case sells for $14. 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. b. The amount of cash receipts the company will budget for the collection of sale revenue is

Agua Cool is a distributor of bottled water. For each of the items, compute the amount of cash receipts or payments Agua Cool 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 $14,000 at a gain of $7,000. 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 16,000 b. Management expects to sell 7,100 cases of water in August and 9,000 cases in September. Each case sells for $14. 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. b. The amount of cash receipts the company will budget for the collection of sale revenue is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 19P

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