ecule af Cash Payts for a Service Company tist·Phyucal Therapy Inc. ? itscash pa
ID: 2404482 • Letter: E
Question
ecule af Cash Payts for a Service Company tist·Phyucal Therapy Inc. ? itscash payments f reperations for fost ear terDanaary-arch), Th. Accrued Expernas Payable balece on January 1 is $15 000. The budgtedexp-for the neat three months a Janwary February 2,400 2,600 41 300 112.200 2,500 91.600 $119,800 dog expenses include 42.000 of modly dge.datia" eo .se .nd $500 of memNy im rance expense th" wn pmp d ferthe year on May lofthe previo n year. Ode ng-penses, 70% are paid ints mo re a schedule of cash payments for operations for January, Febnuary, and March Fatliate Pysical Therapy Ine Schedule of Cash Payments for Operations For the Three Hoths Ending Harch 31 January February HarExplanation / Answer
schedule of cash payments for operations
for the three months ending march 31
working note:
(3000 + 500 =>3500) of non cash expense comprising of depreciation and insurance expense is to be deducted every month.
in january we will pay accrued balance payable on january 1 i.e $15,000.
out of total expenses of 91,600
$3,500 is non cashexpense.......(depreciation+prepaid insurance)
of the remaining (91600-3500)
=>88,100.
70% is paid in january
=>88,100*70% = $61,670 is paid in january.
30% i.e 88,100 * 30% =>26,430 is paid in february.
now,
february cash expenses = $112,200 - 3500 =>108,700.
70% is paid in february =>108,700 * 70% =>76,090.
30% is paid in march =>108,700*30% =>32,610.
now.
march cash expense =119,400 - 3500 =>115,900
70% is paid in march =115,900 * 70% =>81,130.
30% is paid in april =115,900 *30%=>34,770.
january february march payments of prior month's expense $15,000 26,430 32,610 payments of current months expense 61,670 76,090 81,130 total payment 76,670 102,520 113,740Related Questions
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