Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash paym

Question

Schedule of Cash Payments

Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2013. The Accrued Expenses Payable balance on July 1 is $27,600. The budgeted expenses for the next three months are as follows:

Other operating expenses include $3,400 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on March 1 of the current 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 July 1 relates to the expenses incurred in June.

Prepare a schedule of cash payments for operations for July, August, and September.

Select Physical Therapy Inc.

Schedule of Cash Payments for Operations

For the Three Months Ending September 30, 2013

July

August

September

Payments of prior month's expense

$  

$  

$  

Payment of current month's expense

  

  

  

Total payment

$  

$  

$  

July August September Salaries $63,500 $77,300 $85,600 Utilities 5,200 5,800 6,900 Other operating expenses 49,500 54,000 59,400 Total $118,200 $137,100 $151,900

Explanation / Answer

Note: Out of Total expesnes $3400 of Deprciation and $800 of Insurance has been deducted to arrive at the total Cash expenses

Select Physical Therapy Inc Schedule of Cash Payments for Operations For the Three Months Ending September 2013 July August September Payment of Prior Month's expense $27,600 $22,800 $26,580 Payment of Current Month's expense $91,200 $106,320 118160 Total Payment $118,800 $129,120 $144,740

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