Estimated cash payments budget Organic Physical Therapy Inc. is planning its cash payments for operations for the three months ending March 31. The Accrued Expenses Payable balance on January 1 is $12,000. The budgeted expenses for the next three months are as follows January February March Salaries $40,000 $45,000 $60,000 Utilities 10,000 12,000 15,000 Other operating expenses 7,000 8,000 9,000 Total $57,000 $65,000 $84,000 Other operating expenses include $2,000 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid in the prior 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. Enter all amounts as positive numbers. ORGANIC PHYSICAL THERAPY INC. Schedule of Cash Payments for Operations For the Three Months Ending March 31 Line Item Description Payments of prior month's expense Payments of current month's expense Total cash payments January 12.000 ✔ 口口具 February March 1000 1000€ 88
Estimated cash payments budget Organic Physical Therapy Inc. is planning its cash payments for operations for the three months ending March 31. The Accrued Expenses Payable balance on January 1 is $12,000. The budgeted expenses for the next three months are as follows January February March Salaries $40,000 $45,000 $60,000 Utilities 10,000 12,000 15,000 Other operating expenses 7,000 8,000 9,000 Total $57,000 $65,000 $84,000 Other operating expenses include $2,000 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid in the prior 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. Enter all amounts as positive numbers. ORGANIC PHYSICAL THERAPY INC. Schedule of Cash Payments for Operations For the Three Months Ending March 31 Line Item Description Payments of prior month's expense Payments of current month's expense Total cash payments January 12.000 ✔ 口口具 February March 1000 1000€ 88
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Estimated cash payments budget
Organic Physical Therapy Inc. is planning its cash payments for operations for the three months ending March 31. The Accrued Expenses Payable balance on January 1 is $12,000. The budgeted expenses for the next three months are as follows:
January
February
March
Salaries
$40,000
$45,000
$60,000
Utilities
10,000
12,000
15,000
Other operating expenses
7,000
8,000
Total
$57,000
$65,000
9,000
$84,000
Other operating expenses include $2,000 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid in the prior 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. Enter all amounts as positive numbers.
ORGANIC PHYSICAL THERAPY INC.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
Line Item Description
Payments of prior month's expense
Payments of current month's expense
Total cash payments
January
$12,000 V
February
March
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