QUESTION 25 Beta Company expects to begin operating on January 1. The company's master budget contained the following operating expense budget: January February March Salary expense $ 40,000 $ 36,000 $ 36,000 Sales commissions, 5% of sales 24,000 30,000 28,000 Utilities 2,800 2,800 2,800 Depreciation on store equipment 1,800 1,800 1,800 Rent 7,200 7,200 7,200 Miscellaneous 1,800 1,800 1,800 Total operating expenses $ 77,600 $ 79,600 $ 77,600 Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of cash to be paid for operating expenses during the month of January is: A. $53,600. B. $51,800. C. $77,600. D. None of the answers are correct. QUESTION 27 Star Company prepared the following sales budget for the second quarter. Projected sales for each of the rst three months of operations are as follows: Sales Budget April May June Cash Sales 30,000 43,000 55,000 Sales on Account 370,000 432,000 405,000 400,000 475,000 460,000 Star Co. expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the ending accounts receivable balance that would be reported on the proforma balance sheet prepared as of June 30? A. $164,700. B. $121,500. 0. $283,500. D. $86,400. QUESTION 28 Purchases on account are given below: 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month. How much will the cash payments for purchases be in December? A. $44,500. B. $50,000. 0. $46,000. D. $45,500