Convoy Company Has the Following Information $\text { Budgeted Expenses per Month: }$

question 91

Essay

Convoy Company has the following information: $\begin{array}{lc}\text { Month } & \text { Budgeted Sales } \\\text { April } & \$ 154,000 \\\text { May } & 160,000 \\\text { June } & 142,000 \\\text { July } & 136,000\end{array}$ $\text { Budgeted Expenses per Month: }$
$\begin{array}{ll}\text { Wages } & \$ 28,600 \\\text { Advertising } & 27,200 \\\text { Depreciation } & 19,000 \\\text { Rent } & 20,400 \\\text { Freight-out } & 20 \% \text { of sales } \\\text { Other } & 8 \% \text { of sales }\end{array}$ Note: All cash expenses are paid when incurred. Required:
Prepare a combined schedule of total operating expenses and cash disbursements for expenses for April through June.

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Definitions:

Capitalized Loss

A loss from an investment or asset that is added to the cost basis of another asset, rather than being immediately expensed.

Long-Term Investments-AFS

Available-for-sale long-term investments are those not classified as held-to-maturity or trading securities, and are reported at fair market value.

Short-Term Investments-AFS

Assets that are readily marketable and intended to be converted into cash within a short period, typically a year, classified as "Available for Sale."

Notes Payable

Short or long-term liabilities representing amounts the company owes on written promises to pay specified sums of money at future dates.