Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. i

Question

Schedule of Cash Payments for a Service Company

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $28,300. The budgeted expenses for the next three months are as follows:

Other operating expenses include $3,600 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, 65% 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.

January February March Salaries $65,100 $79,200 $87,700 Utilities 5,400 5,900 7,100 Other operating expenses 50,100 54,600 60,100 Total $120,600 $139,700 $154,900

Explanation / Answer

Solution:

Eastgate Physical Therapy Inc. Schedule of cash payments for operations Particulars January Feburary March Payments of prior month's expense $28,300.00 $40,670.00 $47,355.00 Payments of current month's expense $75,530.00 $87,945.00 $97,825.00 Total cash payments $103,830.00 $128,615.00 $145,180.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.