October November December Budgeted S&A Expenses Salary Expense 42,000 42,500 43,000 Sales Commissions 5% of Sales 21,000 21,500 21,300 Insurance Expense 18,000 18,000 18,000 Rent 21,600 21,600 21,600 Depreciation on equipment 25,500 25,500 25,500 Utilities 2,700 2,900 3,100 Total Operating Expenses 130,800 132,000 132,500 Schedule of Cash Payments for S&A Expenses Salary Expense ? 42,500 ? 100% of Prior Month Sales 21,100 ? ? Commissions Insurance Expense 18,000 18,000 18,000 Rent ? ? 21,600 100% of Prior Months Utilities 2,800 ? ? Expense Total Payments for S&A Expenses ? ? ? What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement? Multiple Choice O $395,300 O O $318.800 O O $132,500 O O $318,300 Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $140,000. October November December Budgeted Cost of Goods 130,000 110,000 120,000 Sold Plus: Desired Ending 34,000 ? ? Inventory Inventory Needed 164,000 ? ? Less: Beginning Inventory 23,000 ? ? Required purchases (on 141,000 ? ? Account) What would be the required purchases (on account) for December? Multiple Choice $120,000 $123,000 $103,000 $140,300