Business, 08.04.2020 01:51 zaratayyibah

The following budget information is available for the HD Sales Company (HDC) for January:

Sales $ 320,000
Freight out $ .25 per unit sold
Depreciation on Admin. Equipment $ 10,000
Sales & Admin. Salaries $ 40,000 +2% of sales
Advertising $ 12,000
Depreciation on Manuf. Equip. $ 15,000
Lease on Sales Building $ 45,000
Miscellaneous Selling Expenses $ 5,000
1. All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?

a. $123,400

b. $138,400

c. $113,400

d. $293,400

The following budget information is available for the HD Sales Company for January:

Sales $ 320,000
Freight out $ .25 per unit sold
Depreciation on Admin. Equipment $ 10,000
Sales & Admin. Salaries $ 40,000 +2% of sales
Advertising $ 12,000
Depreciation on Manuf. Equip. $ 15,000
Lease on Sales Building $ 45,000
Miscellaneous Selling Expenses $ 5,000
2. Based on January sales of 20,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be

a. $123,400.

b. $131,250.

c. $113,400.

d. $128,400.

Answers: 3

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The following budget information is available for the HD Sales Company (HDC) for January:

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