Budgeted S&A Expenses
Salary Expense
Sales Commissions 5% of Sales
Insurance Expense
Rent
Depreciation on equipment
Utilities
Total Operating Expenses
Schedule of Cash Payments for S&A
Expenses
Salary Expense
100% of Prior Month Sales Commissions
Insurance Expense
Rent
100% of Prior Months Utilities Expense
Total Payments for S&A Expenses
10,000
5,000
2,000
2,400
1,500
1,100
22,000
?
5,100
2,000
?
1,200
?
November
10,500
5,500
2,000
2,400
1,500
1,300
23,200
10,500
?
2,000
?
December
11,000
5,300
2,000
2,400
1,500
1,500
23,700
?
?
2,000
2,400
?
?
What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement?
$63,900
$23,700
$68,900
$64,400