Speedy Runner makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year: Sales commission Salaries Shipping expenses Bad debt expense Depreciation on sales vehicles Advertising Cost $2 per pair of shoes sold $590,000 $6.00 per pair of shoes sold 1.5% of sales revenue $24,000 $29,500 Mhat will Speedy Runner budget for cash

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Speedy Runner makes running shoes and they are anticipating the incurrence of the following operating expenses
during the upcoming year:
Sales commission
Salaries
Shipping expenses
Bad debt expense
Depreciation on sales vehicles
Advertising
OA. $590,000
Cost
$2 per pair of shoes sold
$590,000
$6.00 per pair of shoes sold
1.5% of sales revenue
Speedy Runner plans to sell 127,000 pairs of shoes at $100 per pair. What will Speedy Runner budget for cash
disbursements related to operating expenses?
B. $1,786,500
C. $1,659,500
D. $1,635,500
$24,000
$29,500
Transcribed Image Text:Speedy Runner makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year: Sales commission Salaries Shipping expenses Bad debt expense Depreciation on sales vehicles Advertising OA. $590,000 Cost $2 per pair of shoes sold $590,000 $6.00 per pair of shoes sold 1.5% of sales revenue Speedy Runner plans to sell 127,000 pairs of shoes at $100 per pair. What will Speedy Runner budget for cash disbursements related to operating expenses? B. $1,786,500 C. $1,659,500 D. $1,635,500 $24,000 $29,500
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