October November December Budgeted S&A Expenses Salary Expense 30,000 30,500 31,000 Sales Commissions 5% of Sales 15,000 15,500 15,300 Insurance Expense 12,000 12,000 12,000 Rent 14,400 14,400 14,400 Depreciation on equipment 16,500 16,500 16,500 Utilities 2,100 2,300 2,500 Total Operating Expenses 90,000 91,200 91,700 Schedule of Cash Payments for S&A Expenses Salary Expense ? 30,500 ? 100% of Prior Month Sales 15,100 ? ? Commissions Insurance Expense 12,000 12,000 12,000 Rent ? ? 14,400 100% of Prior Months Utilities 2,200 ? ? Expense Total Payments for S&A Expenses ? ? ? What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter? Multiple Choice $15,000 $31,000 $15,500 $15,300