In: Accounting
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 | $98,600 |
April | 92,700 |
May | 84,400 |
Depreciation, insurance, and property taxes represent $21,000 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. 68% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Excel Learning Systems Inc. | |||
Schedule of Cash Payments for Selling and Administrative Expenses | |||
For the Three Months Ending May 31 | |||
March | April | May | |
March expenses: | |||
Paid in March | $ | ||
Paid in April | $ | ||
April expenses: | |||
Paid in April | |||
Paid in May | $ | ||
May expenses: | |||
Paid in May | |||
Total cash payments | $ | $ | $ |
Excel Learning Systems Inc. | |||
Schedule of Cash Payments for Selling and Administrative Expenses | |||
For the Three Months Ending May 31 | |||
March | April | May | |
March expenses: | |||
Paid in March | $ 52,768.00 | ||
Paid in April | $ 24,832.00 | ||
April expenses: | |||
Paid in April | $ 48,756.00 | ||
Paid in May | $ 22,944.00 | ||
May expenses: | |||
Paid in May | $ 43,112.00 | ||
Total cash payments | $ 52,768.00 | $ 73,588.00 | $ 66,056.00 |
Working
March | April | May | |
Total Expenses | $ 98,600.00 | $ 92,700.00 | $ 84,400.00 |
Less: Non cash expense(Depreciation etc) | $ 21,000.00 | $ 21,000.00 | $ 21,000.00 |
Cash expense | $ 77,600.00 | $ 71,700.00 | $ 63,400.00 |
Excel Learning Systems Inc. | |||
Schedule of Cash Payments for Selling and Administrative Expenses | |||
For the Three Months Ending May 31 | |||
March | April | May | |
March expenses: | |||
Paid in March | =77600*68% | ||
Paid in April | =77600*32% | ||
April expenses: | |||
Paid in April | =71700*68% | ||
Paid in May | =71700*32% | ||
May expenses: | |||
Paid in May | =63400*68% |