Tough Terrain Company manufactures professional quality lawn mowers. Tough Terrain inobj. 2 curs variable selling expenses of \(\$ 15\) per lawn mower. Other annual selling and administrative expenses for 2004 are estimated as follows:

Prepare a selling and administrative budget for 2004, showing the total budgeted selling and administrative expenses and the cash disbursements for selling and administrative expenses by quarter and for the year in total. (Hint: Is there a periodic cash flow associated with depreciation?)

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Advertising $200,000 Insurance 100.000 Executive salaries 500,000 Property taxes 20,000 Depreciation 10.000 The sales for 2004 are estimated as follows: Quarter Unit Sales 1 5.000 234 30.000 20.000 2,000