Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000
If selling, general, and administrative expenses (SGA) are historically 18% of sales, what are the expected SGA expenses (in dollars)?
A) $18,000,000
B) $27,000,000
C) $30,000,000
D) $41,000,000
B
Explanation: B) SGA =0.18 * (Sales) = 0.18 * $150,000,000 = $27,000,000.
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Jaye B. Honest, CPA, was offered the engagement to audit Wicket Corporation for the year ended June 30, Year 3. She had served as a director of Wicket Corporation until June 30, Year 1, and her spouse currently owns 600 of the 10,000 outstanding shares of Wicket Corporation. Jaye disassociated from Wicket prior to being offered the engagement. Moreover, the engagement does not cover any period that includes Jaye's association or employment with Wicket. Under the AICPA Code of Professional Conduct, she should
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Businesses that sell for the most part to other organizations rather than directly to customers are ________
a. retailers b. wholesalers c. brokers d. agents