A) Schedule of cash payments for a service company

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 $34,100. The budgeted expenses for the next three months are as follows:

Line Item Description	January	February	March
Salaries	$78,400	$95,500	$105,700
Utilities	6,500	7,200	8,500
Other operating expenses	60,400	65,800	72,500
Total	$145,300	$168,500	$186,700

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, 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.

Line Item Description	January	February	March
Payments of prior month's expense	34100	?	?
Payments of curren month's expense	?	?	?
total cash payments	?	?	?

B) Production budget

Quetzaltenango Candle Inc. projected sales of 46,000 candles for March. The estimated March 1 inventory is 3,200 units, and the desired March 31 inventory is 5,000 units.

Prepare a production budget report in units for Quetzaltenango Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Line Item Description	Units
Expected units to be sold	46000
desired ending inventory, march 31	5000
Total units available	51000
Estimated begining inventory, March 1	?
Total units to be produced in March	47800