Question 30 3.333 pts The treasurer of U Co. has accumulated the budget informat

Question

Question 30 3.333 pts The treasurer of U Co. has accumulated the budget information presented in the table for the months of March and April pertaining to cash payments. Thirty percent of the merchandise costs are expected to be paid in the month they are incurred and the remaining seventy percent in the following month. All of the operating expenses are paid for by cash in the month they are incurred. The accounts payable balance on March 1 is $30,000. What is the amount to include in the Cash Budget for the month of March for the Operating Expenses? MARCH APRIL Merchandise costs S60,000 S66,000 Operating expenses 50,000 55,000 $62.400 $55.000 O $50,000 O $30.000

Explanation / Answer

The Correct Answer is OPTION - C $50,000

$50,000 is the amount to be included in Cash Budget for m/o March as Operating Expenses.

This is because, unlike merchandise cost, Operating expenses of a month are paid in cash in the month in which they occur. This is given in the queestion.

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