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 $29,800. The budgeted expenses for the next three months are as follows:

	January		February		March
Salaries	$68,500		$83,400		$92,400
Utilities	5,700		6,300		7,500
Other operating expenses	52,700		57,400		63,200
Total	$126,900		$147,100		$163,100

Other operating expenses include $3,800 of monthly depreciation expense and $900 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.

EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31

	January	February	March
Payments of prior month's expense	$29,800	$fill in the blank	$fill in the blank

Payments of current month's expense	fill in the blank	fill in the blank	fill in the blank
Total cash payments	$fill in the blank	$fill in the blank	$fill in the blank

2. Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

	Rumble		Thunder
Estimated inventory (units), June 1	278		69
Desired inventory (units), June 30	319		60
Expected sales volume (units):
Midwest Region	3,300		2,900
South Region	5,800		5,050
Unit sales price	$110		$195

Question Content Area

a. Prepare a sales budget.

Sonic Inc. Sales Budget For the Month Ending June 30

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region	3300	$110	$fill in the blank
South Region	5800	110	fill in the blank
Total	9100		$fill in the blank
Model: Thunder
Midwest Region	2900	$195	$fill in the blank
South Region	5050	195	fill in the blank
Total	$7950		$fill in the blank
Total revenue from sales			$fill in the blank

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Sonic Inc. Production Budget For the Month Ending June 30

	Units Rumble	Units Thunder
Expected units to be sold	fill in the blank	fill in the blank
Desired inventory, June 30	fill in the blank	fill in the blank
Total	fill in the blank	fill in the blank
Estimated inventory, June 1	fill in the blank	fill in the blank
Total units to be produced	fill in the blank	fill in the blank

3. Office Mart Inc. has "cash and carry" customers and credit customers. Office Mart 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	$121,000
November	151,000
December	221,000

The Accounts Receivable balance on September 30 was $81,000.

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

OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31

	October	November	December
Receipts from cash sales:
Cash sales	$24,200	$30,200	$44,200
September sales on account:
Collected in October	81,000
October sales on account:
Collected in October	fill in the blank
Collected in November		fill in the blank
November sales on account:
Collected in November		fill in the blank
Collected in December			fill in the blank
December sales on account:
Collected in December			fill in the blank
Total cash receipts	$fill in the blank	$fill in the blank	$fill in the blank