Farley Company Reported the Following Information for 2016 Operating Expenses Are: Salaries, $50,000; Depreciation, $20,000; Rent, $10,000; Utilities

question 108

Multiple Choice

Farley Company reported the following information for 2016: $\begin{array}{llcc}&\underline{\text { September }} &\underline{\text { October }}& \underline{\text { November }}&\underline{\text { December }}&\underline{\text { January }}\\\text { Budgeted purchases }&\$90,000&\$120,000&\$128,000&\$144,000&\$88,000\end{array}$
Operating expenses are: Salaries, $50,000; Depreciation, $20,000; Rent, $10,000; Utilities, $14,000.
-Operating expenses are paid during the month incurred.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?

• A)$202,000
• B)$74,000
• C)$94,000
• D)$222,000

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Definitions:

Pressure

The force exerted by something against a surface, usually measured in units such as Pascal (Pa) or pounds per square inch (psi).

Basaltic Lava

A type of lava originating from the mantle, characteristically dark and rich in magnesium and iron, with low viscosity.

Shield Volcano

A shield volcano is a type of volcano with broad, gently sloping sides and nearly circular base, formed by the eruption of low-viscosity lava that can flow a great distance from the vent.

Scoria Cone

A small volcanic cone made up of basaltic lava fragments and ash, typically created during explosive eruptions.