B D F G E 1 Problem 3: Cash payments for SG&A expenses 2. 3. Aristo Pharma Inc. projected selling and administrative expenses (SG&A) for the last quarter of 20Y1 as follows: 4 5 6 Total expenses October November December $72,000 $95,000 $120,000 7 8 9. Of the estimated monthly expenses, 10 Depreciation, insurance, and property taxes represent $12,000 11 The annual insurance premium was paid on February 28, 12 Property taxes for the year will be paid in January 7 20Y2. 13 23 14 Of the remainder expenses, 15 60% are expected to be paid in the month in which they are incurred 16 with the balance to be paid in the following month. 17 18 Required: 19 A Prepare a schedule of cash payments for SG&A expenses for 20 October, November and December 21 22 Solution: Aristo Pharma Inc. 24 Schedule of Cash Payments for Selling and Administrative Expenses 25 For the last quarter of the year ended December 31 20Y1 26 October November December 27 October expenses 28 Paid in October 29 Paid in November 30 November expenses Paid in November 32 Paid in December 33 December expenses 34 Paid in December 35 Total cash payments 36 37 31 38