(a) For the current year, Aqua Ltd. had net sales of $385,000 and…

Question (a) For the current year, Aqua Ltd. had net sales of $385,000 and… (a) For the current year, Aqua Ltd. had net sales of $385,000 and paid $178,000 for the cost of goods sold. They had average receivables of $156,000, average payables of $76,000, and an average inventory of $87,000. Calculate the Operating cycle and Cash cycle for Aqua Ltd. Interpret the results. (7 points) (b) Prepare a Cash Budget based on the info below for the year 2020 for the months of September, October, November, and December. (8 points)- Aqua Ltd., anticipates sales of $24,000 in September 2020, with anticipated growth of 8% per month.- Credit sales are paid 60% the same month and 40% the following month (credit sales for August 2020 were $17,000)- Credit purchases are paid 35% of sales; paid in the month they are incurred- Wages and expenses are 30% of sales every month; paid in the month they are incurred- In November 2020, the company pays $29,000 cash for new equipment- The beginning cash balance is $19,000 Accounting Business Managerial Accounting Share QuestionEmailCopy link Comments (0)