RJ Company's budgeted operating expenses for April are $49,000 which includes depreciation expense and insurance expense. During April, RJ's budgeted insurance expense is $5,500 and RJ's prepaid insurance account is budgeted for a $2,000 decrease. How much depreciation expense was budgeted for April assuming that April's budgeted cash payments for operating expenses totaled $38,000?

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The budgeted cash payments for operating expenses are $38,000. The total budgeted operating expenses are $49,000. The difference of $11,000 includes non-cash expenses like depreciation and the decrease in prepaid insurance. Since the prepaid insurance decreases by $2,000, the remaining $9,000 is the budgeted depreciation expense.

RJ Company's Budgeted Operating Expenses for April Are $49,000 Which