October November December Budgeted Selling and Administrative Expenses Salary Expense 12,000 12,500 13,000 Sales Commissions 5% of Sales 6,000 6,500 6,300 Insurance Expense Rent 3,000 3,000 3,000 3,600 3,600 3,600 Depreciation on equipment 3,000 3,000 3,000 Utilities 1,200 1,400 1,600 Total Operating Expenses 28,800 30,000 30,500 Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses What is the total amount of Selling and Administrative expenses for the fourth quarter that the company will report on its pro forma income statement? ? 12,500 6,100 7 ? 3,000 3,000 3,000 7 ? 3,600 1,300 ? ? ? ? 7 Multiple Choice