Question

Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries, $2,400 of other cash administrative expenses, $1,350 of depreciation expense on the administrative equipment, and 0.5% monthly interest on an outstanding bank loan of $10,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month. Multiple Choice $17,400. $5,050. $8,750. $8,800. $7,400.

Answer 1

$8,750

Step-by-step explanation:

admin salaries 5,000

other expenses 2,400

dep expense 1,350

total 8,750

The interest expense is not an operating expense, is a company's decision of ifnancing through debt instead of equity, it must be reflected as a separated line in order to make a decision in the future of increase or reduce the debt and the cost associate with.