Office Salaries Expense - from Operating Expense Budget

Murray expects to hire TWO office workers in July 200X. Each employee will be paid $1,300 each month during 200X. As a result, Murray's 200X Forecasted Income Statement will show a Total Office Salaries Expense of $15,600 ($1,300 per month x two employees x 6 months). In addition, Murray's 200X Forecasted Cash Flow Statement will show a Cash Outflow of $2,600 per month for Office Salaries.

In 200Y, Murray plans to increase each employee salary to $1,516.66 per month. As a result, his 200Y Forecasted Income Statement will show a Total Office Salaries Expense of $36,400 ($1,516.66 per month x two employees x 12 months). In addition, Murray's 200Y Forecasted Cash Flow Statement will show a Cash Outflow of $3,033 per month for Office Salaries.