Question
The Red Keep is a fine dining establishment with a medieval theme known for its policy of dinner and a show. The Red Keep has
The Red Keep is a fine dining establishment with a medieval theme known for its policy of dinner and a show. The Red Keep has the following operating expenses for January (its first month ofoperations) and February:
January | February | |
Salaries and Wages | $15,000 | $16,000 |
Rent | $10,000 | $10,000 |
Depreciation | $4,000 | $4,000 |
Utilities | $7,500 | $8,500 |
Insurance | $2,000 | $2,000 |
Salaries and Wages are paid on the last day of the month. Rent is paid on the first day of the month. Utilities are paid on the 15th of the following month. Insurance is paid on the 15th of the following month.
What are the Red Keeps cash payments for operating expenses for January and February?
A. $25,000; $35,500
B. $29,000; $39,500
C. $34,500; $36,500
D. $38,500; $40,500
E. There is not enough information.
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