What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement? Multiple Choice

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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October November December
Budgeted S&A Expenses
Salary Expense
10,000 10,500 11,000
Sales Commissions 5% of Sales.
5,300
5,000 5,500
2,000
Insurance Expense
2,000
2,000
Rent
2,400
2,400
2,400
1,500
1,500
1,500
Depreciation on equipment
Utilities
1,100
1,300
1,500
Total Operating Expenses
22,000
23, 200
23,700
Schedule of Cash Payments for S&A
Expenses
Salary Expense
?
10,500
?
100% of Prior Month Sales
5,100
?
?
Commissions
Insurance Expense
2,000
2,000
?
2,000
2,400
Rent
?
100% of Prior Months Utilities
1,200
?
?
Expense
Total Payments for S&A Expenses
?
?
?
What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement?
Multiple Choice
$64,400
$68,900
$23,700
$63,900
Transcribed Image Text:October November December Budgeted S&A Expenses Salary Expense 10,000 10,500 11,000 Sales Commissions 5% of Sales. 5,300 5,000 5,500 2,000 Insurance Expense 2,000 2,000 Rent 2,400 2,400 2,400 1,500 1,500 1,500 Depreciation on equipment Utilities 1,100 1,300 1,500 Total Operating Expenses 22,000 23, 200 23,700 Schedule of Cash Payments for S&A Expenses Salary Expense ? 10,500 ? 100% of Prior Month Sales 5,100 ? ? Commissions Insurance Expense 2,000 2,000 ? 2,000 2,400 Rent ? 100% of Prior Months Utilities 1,200 ? ? Expense Total Payments for S&A Expenses ? ? ? What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement? Multiple Choice $64,400 $68,900 $23,700 $63,900
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