Prepare a schedule of cash payments for operations for January, February, and March.
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
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
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 | |||
| January | February | March | |
| Payments of prior month's expense | $ | $ | $ |
| Payment of current month's expense | |||
| Total payment | $ | $ | $ |
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