Rowen Company pays 80% of its expenses in the month incurred.Rowen's controller has developed the following budgeted amounts budgeted for selling and administrative expenses for July:
What amount will Rowen report on its July pro-forma income statement for selling and administrative expenses?
A) $47,920
B) $59,900
C) $43,900
D) $35,120

Question

Rowen Company pays 80% of its expenses in the month incurred.Rowen's controller has developed the following budgeted amounts budgeted for selling and administrative expenses for July:
  What amount will Rowen report on its July pro-forma income statement for selling and administrative expenses? 
A) $47,920 
B) $59,900 
C) $43,900 
D) $35,120

Quizplus · Accepted Answer

$16,600 + $15,300 + $8,600 + $7,400 + $12,000 = $59,900

Rowen Company Pays 80% of Its Expenses in the Month