Administrative Expenses Are Expected to Be $15,000 for Each of the Months

Multiple Choice

Administrative expenses are expected to be $15,000 for each of the months of January, February and March 2015 and to increase by 10% in each of the next three months of the year. Administrative expenses are paid one month after they are incurred, and include a depreciation charge of $3,000 per month that is not expected to change over the 6 months. The figure for administrative expenses that will appear in the April cash budget is:

A) $15,000
B) $12,000
C) $13,200
D) $16,500