Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $31,500. The budgeted expenses for the next three months are as follows:

January February March
Salaries $72,500 $88,200 $97,700
Utilities 6,000 6,600 7,900
Other operating expenses 55,800 60,800 67,000
Total $134,300 $155,600 $172,600

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, 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.

EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31
January February March

Depreciation expenseOther operating expensesPayments of prior month's expenseSalariesUtilities

$- Select - $- Select - $- Select -

Depreciation expenseOther operating expensesPayments of current month's expenseSalariesUtilities

- Select - - Select - - Select -
Total cash payments $fill in the blank 9 $fill in the blank 10 $fill in the blank 11

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Describe the stereotypes associated with lesbians and gay men.

Answered: 1 week ago

Question

CFD is highly risky. Do you agree? Give reasons for your answer.

Answered: 1 week ago