Question

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 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. 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
	$	$	$
Total cash payments	$	$	$

Answer 1