What Number do You Have in Mind?A City establishes a sanitation district. During its first year of operations it engages in the following transactions:1. It bills residents $5 million for trash pick-up services, of which it collects (as budgeted) $4.8 million. It expects to collect the remainder in the future.2. It purchases new sanitation vehicles for $2 million.3. Employees earn wages and salaries of $1.5 million plus $0.1 million in vested vacation and sick leave.4. It incurs other operating costs of $1 million.
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