October November December Budgeted S&A Expenses Salary Expense 40,000 40,500 41,000 Sales Commissions 5% of Sales 20,000 20,500 20,300 Insurance Expense 17,000 17,000 17,000 Rent 20,400 20,400 20,400 Depreciation on equipment 24,000 24,000 24,000 Utilities 2,600 2,800 3,000 Total Operating Expenses 124,000 125,200 125,700 Schedule of Cash Payments for S&A Expenses Salary Expense ? 40,500 ? 100% of Prior Month Sales 20, 100 ? ? Commissions Insurance Expense 17,000 17,000 17,000 Rent ? ? 20,400 100% of Prior Months Utilities 2,700 ? ? 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 $41,000 $20,500 $20,300 $20,000 Cheyenne Company has budgeted the following information for June: Cash receipts Beginning cash balance Cash payments Desired ending cash balance $307,000 14,000 334,000 34,000 If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be: Multiple Choice $430. $670 O $470