January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January year are
as follows: sales commissions, $; rent, $; utilities, $; depreciation, $; and miscellaneous, $ Utilities are
paid in the month after they are incurred. Other expenses are expected to be paid in cash in the month in which they are incurred.
Required
a Determine the amount of budgeted cash payments for January selling and administrative expenses.
b Determine the amount of utilities payable the store will report on the January pro forma balance sheet.
c Determine the amount of depreciation expense the store will report on the income statement for year assuming that monthly
depreciation remains the same for the entire year.
