Schedule of Cash Payments for a Service CompanyEastGate Physical Therapy Inc. is planning its cashpayments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January1 is $32,500. The budgeted expenses for the next threemonths are as follows:January FebruaryMarchSalaries$74,800$91,000 $100,800Utilities6,2006,8008,100Other operating expenses57,60062,80069,100Total$138,600 $160,600$178,000Other operating expenses include $4,100 of monthlydepreciation expense and $900 of monthly insuranceexpense that was prepaid for the year on May 1 of theprevious year. Of the remaining expenses, 65% are paid inthe month in which they are incurred, with the remainderpaid in the following month. The Accrued Expenses Payablebalance on January 1 relates to the expenses incurred inDecember.Prepare a schedule of cash payments for operations forJanuary, February, and March.EastGate Physical Therapy Inc.Schedule of Cash Payments for OperationsFor the Three Months Ending March 31JanuaryFebruaryMarchTotal cash payments

Accrued expenses payable as on January 1 will be paid in January. Out of other operating expenses,…

Answered: Schedule of Cash Payments for a Service…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Newman Medical Clinic has budgeted the following cash flows. January February March $101,000 $107,000 $127,000 Cash receipts Cash payments For inventory purchases For S&A expenses Newman Medical had a cash balance of $8,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Newman pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Cash Budget Beginning cash balance Add: Cash receipt Cash available Less: Cash payments 90,500 31,500 Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) For inventory purchases For S&A expenses Interest expense per month…
None
Fedor, Inc. has prepared the following direct materials purchases budget: Budgeted DM Purchases $69.000 77,000 78,700 77,800 76,200 All purchases are paid for as follows: 40% in the month of purchase, 50% in the following month, and 10% two months after purchase. Calculate total budgeted cash payments made in October for purchases. Month June July August September October OA. $77,250 OB. $46,770 OC. $38,350 O D. $69,380
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 $25,600. The budgeted expenses for the next three months are as follows: January February $58,900 $71,700 $79,400 4,900 5,400 6,400 45,400 49,500 54,500 $109,200 $126,600 $140,300 Other operating expenses include $3,200 of monthly depreciation expense and $700 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. Salaries Utilities Other operating expenses Total Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations…
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 $25,600. The budgeted expenses for the next three months are as follows: January February March Salaries $58,900 $71,700 $79,400 Utilities 4,900 5,400 6,400 Other operating expenses 44,800 48,800 53,800 Total $108,600 $125,900 $139,600 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% 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.
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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 $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $60,300 $73,400 $81,200 Utilities 5,000 5,500 6,600 Other operating expenses 46,400 50,600 $5,700 Total $111,700 $129,500 $143,500 Other operating expenses include $3,300 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, 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…
Newman Medical Clinic has budgeted the following cash flows. January February March $109,000 $115,000 $135,000 Cash receipts Cash payments For inventory purchases For S&A expenses Newman Medical had a cash balance of $12,500 on January 1. The company desires to maintain a cash cushion of $8,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Newman pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) 94,500 76,500 89,500 35,500 36,500 31,500 Cash Budget Cash available Less: Cash payments Total budgeted payments Payments minus receipts Financing Activity $ EA January 0 0…
Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $1,236. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. Inventory purchases average 72% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. Rent is $5,400 per month. Taxes to be paid in June are $6,780. The owner also…

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