Schedule of Cash Payments for a Service Company

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $34,500. The budgeted expenses for the next three months are as follows:

	January	February	March
Salaries	$79,400		$96,600		$107,000
Utilities	6,600		7,200		8,600
Other operating expenses	60,300		65,700		72,400
Total	$146,300		$169,500		$188,000

Other operating expenses include $4,400 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers.

	January	February	March
Payments of prior month's expense	34500
Payments of current month's expense	91585
Total cash payments	126085