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Use the following for uestion #16 only Rambo & Koehler, Inc. expects to begin operating on January 1. The company's Master Budget contained the following
Use the following for uestion #16 only Rambo & Koehler, Inc. expects to begin operating on January 1. The company's Master Budget contained the following Operating Expense (i.e. S,G&A) Budget Januai Februai March expense $20,000 12,000 ,400 900 $18,000 15,000 140 90 3,60 900 $39,800 818,00 Sales commissions, 5% of sal Utilities Depreciation on store equpment Rent 14,000 1,400 90 3,600 90 3,60 scellaneous otal operating expenses 900 $38,800 $38,80 16. 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 (S,G&A) expenses during the month of February is a. $23,900 b. $35,900 c. $36,800d $38,900 e. $39,800
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