Farley Company reported the following information for 2008 O

Farley Company reported the following information for 2008: October November December $120,000 $128,000 $144,000 udgeted purchases Operating expenses are: Salaries, $50,000; Depreciation, $20,000; Rent, $10,000; Utilities, $14,000 . Operating expenses are paid during the month incurred. . Accounts payable is used only for inventory acquisitions. How much is the budgeted amount of cash to be paid for operating expenses in November? Select one: a. $202,000 b. $74,000 0c. $94,000 d. $222,000

Solution

Answer:

Cash to be paid for Operating expanses for November is =$74,000

Working notes for the above answer:

Cash to be paid for Operating expenses for November as under

Operating expanses

Salary

50,000

Rent

10,000

Utility

14,000

Total operating exp

74,000

Note: Depreciation is Non-Cash Expanses so here it will not considered

Operating expanses
Salary	50,000
Rent	10,000
Utility	14,000
Total operating exp	74,000