Question

Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries, $2,400 of other cash administrative expenses, $1,350 of depreciation expense on the administrative equipment, and 0.5% monthly interest on an outstanding bank loan of $10,000. Compute the total budgeted general and administrative expenses budget per month.

Answer 1

Answer:

G&A expenses 8,750 dollars

Explanation:

salaries adminitrative                      5,000

miscellaneous                                  2,400

depreciation expense                      1,350

general and admin expenses         8,750

The interest on the loan are not an operating expense they should be disclosure separately

Not doing so, will mix the income from operation with the capital structure decision of the firm as the firm decides wether or not having interest.