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January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year 1, are as follows:
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year 1, are as follows: sales commissions, $24,500; rent, $12,000; utilities, $5,200; depreciation, $4,200; and miscellaneous, $2,600. 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 31 pro forma balance sheet. c. Determine the amount of depreciation expense the store will report on the income statement for year 1 , assuming that monthly depreciation remains the same for the entire year. Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $590,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 28 percent drop in sales for January. The balance in the Accounts Recelvable account on December 31 was $98,000 and is budgeted to be $73,500 as of January 31 . Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January
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