Question

Webster Corporation's monthly projected general and administrative expenses include $6,000 administrative salaries, $3,400 of other cash administrative expenses, $1,850 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $20,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.

Answer 1

$ 11,250

Step-by-step explanation:

Given data:

General and administrative expenses

Administrative salaries = $ 6,000

Other cash administrative expenses = $ 3,400

Depreciation expense on the administrative equipment = $ 1,850

monthly interest on an outstanding bank loan = 5 % of $20,00

Now,

the total expenses will be calculated as the sum of all the General and administrative expenses

i.e

Administrative salaries + Other cash administrative expenses + Depreciation expense on the administrative equipment

thus,

$ 6,000 + $ 3,400 + $ 1,850

= $ 11,250