Potter Company's expected sales for April are $29,000.Other information follows:
$\begin{array}{ll}\text { Budgeted Operating Expenses }&\text { Amount }\
\text { Wages } & \$ 4,000 \
\text { Advertising } & 1,680 \
\text { Depreciation } & 1,440 \
\text { Rent } & 2,560 \
\text { Promotion } & 5 \% \text { of sales }
\end{array}$
All cash expenses are paid as incurred.What are the expected total cash disbursements for operating expenses for April?
A) $6,240
B) $9,680
C) $9,690
D) $11,130

Question

Quizplus · Accepted Answer

The total cash disbursements include wages, advertising, rent, and promotion (5% of sales), but exclude depreciation as it is a non-cash expense. Calculation: $4,000 (wages) + $1,680 (advertising) + $2,560 (rent) + $1,450 (promotion: 5% of $29,000) = $9,690.

Potter Company's Expected Sales for April Are $29,000 All Cash Expenses Are Paid as Incurred