A.

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 $26,200. The budgeted expenses for the next three months are as follows:

	January		February		March
Salaries	$60,300		$73,400		$81,200
Utilities	5,000		5,500		6,600
Other operating expenses	46,400		50,600		55,700
Total	$111,700		$129,500		$143,500

Other operating expenses include $3,300 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.

B.

Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 25% 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	$129,000
November	161,000
December	236,000

The Accounts Receivable balance on September 30 was $86,000.

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

CH 22 Problems eBook Calculator Schedule of Cash Payments 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 $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $81,200 Utilities $60,300 5,000 46,400 $111,700 $73,400 5,500 50,600 6,600 55,700 Other operating expenses Total $129,500 $143,500 Other operating expenses include $3,300 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. March EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 30 January February Payments of prior month's expense $ 26,200 $ Payments of current month's expense 75,320 87,780 Total payments $ 101,520 Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 25% 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 $129,000 November 161,000 December 236,000 The Accounts Receivable balance on September 30 was $86,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. December $ 59,000 Office World Inc. Schedule of Collections from Sales For the Three Months Ending December 31 October November Receipts from cash sales: Cash sales $ 32,250 $ 40,250 September sales on account: Collected in October 86,000 October sales on account: Collected in October 8,062.50 Collected in November 24,187.50 November sales on account: Collected in November 10,062.50 30,187.50 Collected in December December sales on account: Collected in December 44,250 Total cash receipts $ 126,312.50 143,000 $ 133,437.50