The following budget information is available for Crescent Company for January Year 2: Sales $ 800,000 Cost of goods sold 540,000 Utilities expense 2,500 Administrative salaries 100,000 Sales commissions 5 % of Sales Advertising 20,000 Depreciation on store equipment 50,000 Rent on administration building 60,000 Miscellaneous administrative expenses 10,000 Percentage of sales on credit 80 % All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be: Multiple Choice $312,500. $262,500.

$232,500

Explanation:

The computation of the amount of expected cash outflows for selling and admin expenses is shown below:

Utilities expense  $2,500

Administrative salaries$100,000

Sales commission ($800,000 ×  5%)$40,000

Advertising$20,000

Rent on administrative building$60,000

Miscellaneous administrative expenses$10,000

Total budgeted cash sales and administrative expenses$232,500

We added those expenses which affect the cash balance i.e decrease in cash balance so that the correct amount could arrive

All other items are not relevant. hence,ignored it

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(b) management: leadership

answer; balance sheets;