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 $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 | 46,700 | 50,900 | 56,000 | |||
Total | $113,200 | $131,300 | $145,500 |
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, 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 | |
$ | $ | $ | |
Total cash payments | $ | $ | $ |
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