1.

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

October	$113,000
November	141,000
December	207,000

The Accounts Receivable balance on September 30 was $76,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Office World Inc.
Schedule of Collections from Sales
For the Three Months Ending December 31
	October	November	December
Receipts from cash sales:
Cash sales	$__________	$_________	$__________
September sales on account:
Collected in October	_______
October sales on account:
Collected in October	_________
Collected in November		________
November sales on account:
Collected in November		_________
Collected in December			_________
December sales on account:
Collected in December			_________
Total cash receipts	$_________	$_________	$_________

2.

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (JanuaryMarch). The Accrued Expenses Payable balance on January 1 is $28,100. The budgeted expenses for the next three months are as follows:

	January		February		March
Salaries	$64,600		$78,700		$87,100
Utilities	5,300		5,900		7,000
Other operating expenses	49,100		53,500		58,900
Total	$119,000		$138,100		$153,000

Other operating expenses include $3,500 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% 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.

EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 30
	January	February	March
Payments of prior month's expense	$__________	$___________	$_____________
Payments of current month's expense	_________	_________	__________
Total payments	$__________	$__________	$_____________

Thanks!!!