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 $31,800. The budgeted expenses for the next three months are as follows:
Line Item Description | January | February | March |
---|---|---|---|
Salaries | $73,100 | $89,000 | $98,600 |
Utilities | 6,000 | 6,700 | 8,000 |
Other operating expenses | 56,300 | 61,400 | 67,600 |
Total | $135,400 | $157,100 | $174,200 |
Other operating expenses include $4,000 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, 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.
Line Item Description | 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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