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 $25,000. The budgeted expenses for the next three months are as follows: February $70,000 5,300 47,600 $122,900 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 Salaries Utilities Other operating expenses Total January $57,500 Payments of prior month's expense Payments of current month's expense Total payments 4,800 43,700 $106,000 ) 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 30 January February March 88 March $77,500 6,300 52,400 $136,200
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 $25,000. The budgeted expenses for the next three months are as follows: February $70,000 5,300 47,600 $122,900 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 Salaries Utilities Other operating expenses Total January $57,500 Payments of prior month's expense Payments of current month's expense Total payments 4,800 43,700 $106,000 ) 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 30 January February March 88 March $77,500 6,300 52,400 $136,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 $25,000. The budgeted
expenses for the next three months are as follows:
Salaries
Utilities
Other operating expenses
Total
January
$57,500
4,800
43,700
$106,000
Payments of prior month's expense
Payments of current month's expense
Total payments
February
$70,000
5,300
47,600
$122,900
)
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 30
January February
88
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
March
March
$77,500
6,300
52,400
$136,200
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