Question
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
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 $26,700. The budgeted expenses for the next three months are as follows:
January | February | March | ||||
Salaries | $61,400 | $74,800 | $82,800 | |||
Utilities | 5,100 | 5,600 | 6,700 | |||
Other operating expenses | 47,300 | 51,600 | 56,800 | |||
Total | $113,800 | $132,000 | $146,300 |
Other operating expenses include $3,400 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, 75% 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.
January | February | March | |
Depreciation expenseOther operating expensesPayments of prior month's expenseSalariesUtilitiesPayments of prior month's expense | $Payments of prior month's expense | $Payments of prior month's expense | $Payments of prior month's expense |
Depreciation expenseOther operating expensesPayments of current month's expenseSalariesUtilitiesPayments of current month's expense | Payments of current month's expense | Payments of current month's expense | Payments of current month's expense |
Total cash payments | $fill in the blank 9 | $fill in the blank 10 | $fill in the blank 11 |
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