The Following Details Have Been Extracted from the Budget of a Merchandising

question 130

Multiple Choice

The following details have been extracted from the budget of a merchandising company. $$\begin{array} { | l | l | } \hline \text { Rent Expense } & \$ 8,400 \text { per month } \\\hline \text { Depreciation Expense } & \$ 3,500 \text { per month } \\\hline \text { Insurance Expense } & \$ 2,000 \text { per month } \\\hline \text { Miscellaneous Expense } & 2 \% \text { of sales, paid as incurred } \\\hline \text { Commissions Expense } & 3 \% \text { of sales } \\\hline \text { Salaries Expense } & \$ 6,000 \text { per month } \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | } \hline \text { Dec } & \text { Tan } & \text { Feb } & \text { March } \\\hline \text { Sales } \$ 55,000 & \$ 60,000 & \$ 75,000 & \$ 90,000 \\\hline\end{array}$$ Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month.
Rent and miscellaneous expenses are paid as and when they occur.Insurance is prepaid at the beginning of the quarter.Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.

• A)$21,100
• B)$49,200
• C)$70,300
• D)$26,200

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Definitions:

Systemic Respiration

The overall process of gas exchange between the external environment and an organism's circulatory system, including inhalation, exchange of gases in the lungs, and oxygenation of tissues.

Cellular Respiration

The metabolic process in cells where biochemical energy from nutrients is converted into adenosine triphosphate (ATP), releasing waste products.

Paranasal Sinuses

Air-filled spaces within the bones around the nasal cavity that help to warm, moisten, and filter the air we breathe.

Nasal Cavity

The interior space of the nose, involved in breathing and olfaction, lined with hairs and mucous membranes.