Newspaper Advertising Expense - from Operating Expense Budget

Murray has also decided to advertise his business and product in local newspapers. Moreover, he feels parents of university students may see the advertisements and purchase the product for their children. At any rate, Murray has budgeted $4,333 per month during 200X for newspaper advertising (from July through to December). As a result, his 200X Forecasted Cash Flow Statement will show a Cash Outflow of $4,333 each month for newspaper advertising. Therefore, the total Newspaper Advertising Expense, appearing on Murray's 200X Forecasted Income Statement, is estimated at $25,998 ( $4,333 per month x 6 months).

In addition, Murray has budgeted $2,916.50 per month during 200Y for newspaper advertising ( IE from January through to December). As a result, Murray's 200Y Forecasted Cash Flow Statement will show a Cash Outflow of $2,916.50 each month for newspaper advertising. Therefore, the total Newspaper Advertising Expense, appearing on his 200Y Forecasted Income Statement, is estimated at $34,998 ($2,916.50 per month x 12 months).