Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. I
ID: 2431026 • Letter: S
Question
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. Ils planning its cash payments for operations for the first quarter (Danuary-March). The Accrued Expenses Payable balance on January 1 is $30,200. The budgeted expenses for the next three months are as follows: January February $84,600 6,300 58,300 $149,200 March Salaries Utilities Other operating expenses $69,500 5,700 53,500 $128,700 $93,600 7,600 64,200 $165,400 Other operating expenses include $3,800 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 75% 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 s of prior month's expense Payments of current month's expense ? (Pi 11:45 PMExplanation / Answer
Answer:
First we need to find out the cash expenses for the three month as under
January
February
march
Salary
69500
84600
93600
Utility
5700
6300
7600
Other operating expanses
53500
58300
64200
Less:
depiciation expanses
-3800
-3800
-3800
Prepaid insurance
-900
-900
-900
Cash Expanses
124000
144500
160700
East gate physical therapy inc
Schedule of Cash payment of operation
For the three month ending march-31
January
February
march
Payment of prior month expanses
30,200
31000
36125
(124000*25%)
(144500*25%)
Payment of Current month expanses
93000
108375
120525
(124000*75%)
(144500*75%)
(160700*75%)
Total cash payment
123,200
139,375
156,650
January
February
march
Salary
69500
84600
93600
Utility
5700
6300
7600
Other operating expanses
53500
58300
64200
Less:
depiciation expanses
-3800
-3800
-3800
Prepaid insurance
-900
-900
-900
Cash Expanses
124000
144500
160700
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