1. 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 $27,700. The budgeted expenses for the next three months are as follows:

   	January		February		March
   Salaries	$63,700		$77,600		$85,900
   Utilities	5,300		5,800		6,900
   Other operating expenses	48,400		52,800		58,100
   Total	$117,400		$136,200		$150,900

   Other operating expenses include $3,500 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. 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	$	$	$
   Payments of current month's expense
   Total cash payments	$	$	$

   Feedback

   Calculate cash payments in January, February, and March.

   Learning Objective 5.

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