Porl Corporation Makes and Sells a Single Product Called a Yute

question 102

Multiple Choice

Porl Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the company has budgeted to sell 19,000 Yutes in December,then the budgeted total cash disbursements for selling and administrative expenses for December would be:

• A)$387,100
• B)$231,000
• C)$169,100
• D)$400,100

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Definitions:

Issuance

The process of making securities available for sale to the public or the act of issuing new shares of stock by a company.

Cash Flows

The total amount of money being transferred into and out of a business, especially as it affects liquidity.

Investing Activities

Financial transactions involving the purchase or sale of long-term assets and investments, a component of cash flow statements.

Operating Activities

Operating activities are the day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its earnings.