1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zigmanuir [339]
2 years ago
13

January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year

1, are as follows: sales commissions, $50,000; rent, $30,000; utilities, $10,000; depreciation, $5,000; and miscellaneous, $2,500. Utilities are paid in the month after they are incurred. Other expenses are expected to be paid in cash in the month in which they are incurred. Required Determine the amount of budgeted cash payments for January selling and administrative expenses. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.
Business
1 answer:
gavmur [86]2 years ago
8 0

Answer:

1. The budgeted cash payment for January selling and administrative expenses is $82,500.

2. The amount of utilities payable is $10,000.

3. The amount of depreciation expense the store will report on the income statement for year 1 is $60,000

Explanation:

1. Determine the amount of budgeted cash payments for January selling and administrative expenses.

Budgeted cash payment = Sales commissions + Rent + Miscellaneous

                                         = $50,000 + $30,000 + $2,500

Budgeted cash payment = $82,500.

Therefore, the budgeted cash payment for January selling and administrative expenses is $82,500.

2. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet.

Since utilities are paid in the month after they are incurred, the amount of utilities payable is $10,000.

3. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.

Depreciation expenses for year 1 = $5,000 × 12 = $60,000.

Therefore, the amount of depreciation expense the store will report on the income statement for year 1 is $60,000.

Note that depreciation is not a cash expenses but just a recognition of the wear and tear of the asset. That is why it does not fall under any cash category above but to be reported in the income statement.

You might be interested in
How much actual competition occurs in perfectly competitive markets? some make the claim that there is actually no competition b
Brilliant_brown [7]

The competition in the perfectly competitive market are known to be few in the actual sense.

<h3>What is a perfectly competitive market?</h3>

This is the type of market that is known to have barriers to entry in the market.

In such a business or a market type there is symmetry and their is perfect information existing for the consumers and the producers.

The following are the characteristics of this type of market

  • Firms that produce identical goods
  • large number of buyers
  • Many sellers of the products
  • The buyers and the sellers have perfect information that would enable them to make decisions.

Read more on perfect competitive market here: brainly.com/question/1748396

#SPJ1

5 0
1 year ago
Six importance of transportation to commerce​
Olin [163]
<h2>ANSWER:</h2>

Transportation carries necessary raw materials to factory for production of goods and supplies finished goods to consumers. It creates place and time utility of goods by transporting from one place to another. It easily carries finished to the hands of those who need and use them.

<em>I </em><em>HOPE</em><em> IT</em><em> WILL</em><em> HELP</em><em> YOU</em><em>.</em><em>.</em><em>.</em>

<em>darkprincess</em>

<em>#</em><em>c</em><em>a</em><em>r</em><em>r</em><em>y</em><em>o</em><em>n</em><em>l</em><em>e</em><em>r</em><em>a</em><em>n</em><em>i</em><em>n</em><em>g</em>

6 0
1 year ago
Read 2 more answers
Swifty Corporation expects direct materials cost of $6 per unit for 150000 units (a total of $900000 of direct materials costs).
OLga [1]

Answer:

Explanation:

hope this helps

5 0
2 years ago
Your uncle has $90,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five
dimaraw [331]

Answer:

The question is incomplete, it is missing the last part:

...

<em>Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.66 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.12 at the end of year 5.</em>

<em>Your uncle is obligated to make a balloon payment on an existing loan, in the amount of $24,000, at the end of year 3. He wants to cover that payment out of these funds as well. </em>

First of all, you must invest enough money in B in order to pay your debt.

present value = future value / expected return

present value = $24,000 / $1.36 = $17,647.06

you have $90,000 - $17,647.06 = $72,352.94 to invest in A.

at the end of year 2, you will have:

future value = present value x expected return = $72,352.94 x $1.20 = $86,823.53

then you should invest that money ($86,823.53) in invested D and at the end of year 4 you will have:

future value = $86,823.53 x $1.66 = $144,127.06

finally, you should invest $144,127.06 in investment E and at the end of ear 5 you will have:

future value = $144,127.06 x $1.12 = $161,422.31

5 0
2 years ago
Who should participate in a Training and Exercise Planning Workshop (TEPW)?
Citrus2011 [14]
B is the correct answer
8 0
2 years ago
Other questions:
  • The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the con
    13·2 answers
  • In the example below, all of the items are examples of either observations or inference based on a situation where you walk into
    10·1 answer
  • A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and fa
    14·1 answer
  • An arbiter is consulted when
    12·1 answer
  • Which improvement did the shipping container bring?A. greater productivity B. increased speed of shipping C. clearer communicati
    9·1 answer
  • JUJU's dividend next year is expected to be $1.50. It is trading at $45 and is expected to grow at 9 percent per year. What is J
    8·1 answer
  • Marla, a bookkeeper, would like to work at home in order to be with her young children. But before setting up her home-based boo
    5·2 answers
  • Question 18 Unsaved
    6·2 answers
  • Miranda Fashions competes in the fast-changing world of fickle teenage apparel tastes. To manage this uncertainty, Miranda Fashi
    10·1 answer
  • Click this link to view O*NET’s Skills section for Postal Service Mail Carriers. Note that common skills are listed toward the t
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!