Look back at the selling and administrative expense budget in Exhibit 9-9. All the expense items included in that budget are included in the cash payments schedule except depreciation. Why do you think depreciation expense was included in the selling and administrative expense budget but excluded from the cash payments schedule?

Exhibit 9-9.

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Marcy's Surf Shop Cash Payments Schedule For the Quarter Ended September 30, 2004 July August September Total Purchases $5,200 $5,040 $5,520 $15,760 (a) Selling and Admin. Expense: Salaries and Wages 1,600 2,000 1,800 5,400 Rent 200 200 200 600 -(b) Other Selling and Admin. Expense 800 1,000 900 2,700 Purchase of Display Case 240 (c) Budgeted Cash Payments $7.800 $8,480 $8,420 $24,700 (d)