Question

In: Accounting

Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash...

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 $34,100. The budgeted expenses for the next three months are as follows:

January February March
Salaries $78,400 $95,500 $105,700
Utilities 6,500 7,200 8,500
Other operating expenses 60,400 65,800 72,500
Total $145,300 $168,500 $186,700

Other operating expenses include $4,300 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. Enter all amounts as positive numbers.

EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
January February March
Salaries $ $ $
Utilities
Total cash payments $ $ $

Feedback

Calculate cash payments in January, February, and March.

Solutions

Expert Solution

Solution

EastGate Physical Therapy inc

Schedule of cash payments for operations

For the month ending Mar 31

January

February

March

Payment of prior month's expense

$    34,100.00

$    49,000.00

$    57,120.00

Payment of Current month's expense

$    91,000.00

$ 106,080.00

$ 117,910.00

Total cash Payments

$ 125,100.00

$ 155,080.00

$ 175,030.00

Working

January

February

March

Total Operating Expenses

$ 145,300.00

$ 168,500.00

$ 186,700.00

Less Depreciation

$      4,300.00

$      4,300.00

$      4,300.00

Less: Prepaid insurance expense

$      1,000.00

$      1,000.00

$      1,000.00

Net cash expenses

$ 140,000.00

$ 163,200.00

$ 181,400.00

Paid in current month in %

65%

65%

65%

Paid in current month

$    91,000.00

$ 106,080.00

$ 117,910.00

Paid next month

$    49,000.00

$    57,120.00

$    63,490.00


Related Solutions

Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash...
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: January February March Salaries $57,500 $70,000 $77,500 Utilities 4,800 5,300 6,300 Other operating expenses 43,700 47,600 52,400 Total $106,000 $122,900 $136,200 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance...
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash...
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 $27,900. The budgeted expenses for the next three months are as follows: January February March Salaries $64,200 $78,100 $86,500 Utilities 5,300 5,900 7,000 Other operating expenses 48,800 53,200 58,600 Total $118,300 $137,200 $152,100 Other operating expenses include $3,500 of monthly depreciation expense and $800 of monthly insurance...
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash...
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 $25,400. The budgeted expenses for the next three months are as follows: January February March Salaries $58,400 $71,100 $78,700 Utilities 4,800 5,300 6,400 Other operating expenses 45,000 49,100 54,000 Total $108,200 $125,500 $139,100 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance...
Schedule of Cash Payments EastGate Physical Therapy Inc. is planning its cash payments for operations for...
Schedule of Cash Payments 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 $27,100. The budgeted expenses for the next three months are as follows: January February March Salaries $62,300 $75,900 $84,000 Utilities 5,100 5,700 6,800 Other operating expenses 47,300 51,600 56,800 Total $114,700 $133,200 $147,600 Other operating expenses include $3,400 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid...
Schedule of Cash Payments EastGate Physical Therapy Inc. is planning its cash payments for operations for...
Schedule of Cash Payments 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 $33,100. The budgeted expenses for the next three months are as follows: January February March Salaries $76,100 $92,700 $102,600 Utilities 6,300 7,000 8,300 Other operating expenses 57,800 63,000 69,400 Total $140,200 $162,700 $180,300 Other operating expenses include $4,200 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid...
eBook Calculator Print Item Schedule of Cash Payments EastGate Physical Therapy Inc. is planning its cash...
eBook Calculator Print Item Schedule of Cash Payments 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 $26,700. The budgeted expenses for the next three months are as follows: January February March Salaries $61,400 $74,800 $82,800 Utilities 5,100 5,600 6,700 Other operating expenses 46,700 50,900 56,000 Total $113,200 $131,300 $145,500 Other operating expenses include $3,400 of monthly depreciation expense and $800 of monthly insurance...
Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for...
Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July–September), 2017. The Accrued Expenses Payable balance on July 1 is $28,700. The budgeted expenses for the next three months are as follows: July August September Salaries $66,000 $80,400 $89,000 Utilities 5,500 6,000 7,200 Other operating expenses 50,200 54,700 60,200 Total $121,700 $141,100 $156,400 Other operating expenses include $3,600 of monthly depreciation expense and $800 of monthly insurance expense that was...
Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for...
Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July–September), 2017. The Accrued Expenses Payable balance on July 1 is $34,300. The budgeted expenses for the next three months are as follows: July August September Salaries $78,900 $96,000 $106,300 Utilities 6,500 7,200 8,600 Other operating expenses 60,000 65,400 72,000 Total $145,400 $168,600 $186,900 Other operating expenses include $4,300 of monthly depreciation expense and $1,000 of monthly insurance expense that was...
EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March)....
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 $32,000. The budgeted expenses for the next three months are as follows: January February March Salaries $73,600 $89,600 $99,200 Utilities 6,100 6,700 8,000 Other operating expenses 55,900 60,900 67,100 Total $135,600 $157,200 $174,300 Other operating expenses include $4,000 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on...
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28....
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $82,900 April 76,300 May 69,400 Depreciation, insurance, and property taxes represent $17,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 72% of the remainder of the expenses are expected...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT