a$.$Management expects to sell equipment that cost $ $22,000$ at a gain of $ $2,000.$ Accumulated depreciation on this equipment is $ $8,000.$

b$.$Management expects to sell $7,900$ cases of water in August and $9,400$ cases in September. Each case sells for $ $12.$ 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 $ $3,600$ each month. Commissions and other selling expenses average $10\%$ of sales. Agua Cool pays$$ one$-$half of commissions and other selling expenses in the month$$ incurred, with the balance paid the following month.

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