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 $34,600. The budgeted expenses for the next three months are as follows: January February March Salaries $79,600 $96,900 $107,300 Utilities 6,600 7,300 8,700 Other operating expenses 60,500 65,900 72,600 Total $146,700 $170,100 $188,600 Other operating expenses include $4,400 of monthly depreciation expense and $1,000 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. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March Payments of prior month's expense $34600 $_____ $_____ Payments of current month's expense _____ _____ _____ Total cash payments $_____ $_____ $_____
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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.
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 $34,600. The budgeted expenses for the next three months are as follows:
| January | February | March | |||||
| Salaries | $79,600 | $96,900 | $107,300 | ||||
| Utilities | 6,600 | 7,300 | 8,700 | ||||
| Other operating expenses | 60,500 | 65,900 | 72,600 | ||||
| Total | $146,700 | $170,100 | $188,600 |
Other operating expenses include $4,400 of monthly
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 | |
| Payments of prior month's expense | $34600 | $_____ | $_____ |
| Payments of current month's expense | _____ | _____ | _____ |
| Total cash payments | $_____ | $_____ | $_____ |
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