Question
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
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 $27,900. The budgeted expenses for the next three months are as follows:
January | February | March | ||||
Salaries | $64,200 | $78,100 | $86,500 | |||
Utilities | 5,300 | 5,900 | 7,000 | |||
Other operating expenses | 48,800 | 53,200 | 58,600 | |||
Total | $118,300 | $137,200 | $152,100 |
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, 80% 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 | $ | $ | $ |
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