1.

Schedule of Cash Payments

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 $34,200. The budgeted expenses for the next three months are as follows:

	January		February		March
Salaries	$78,700		$95,800		$106,000
Utilities	6,500		7,200		8,600
Other operating expenses	59,800		65,200		71,800
Total	$145,000		$168,200		$186,400

Other operating expenses include $4,300 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, 80% 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

2.

Marshall Inc. budgeted production of 34,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 103 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 140,000 square yards. The desired December 31, 20Y6, paper inventory is 158,000 square yards.

If paper costs $0.1 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar. $