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), 2017. The Accrued Expenses Payable balance on January 1 is $15,000. The budgeted expenses for the next three months are as follows:
|
January |
February |
March |
| Salaries |
$56,900 |
|
$ 68,100 |
|
$ 72,200 |
|
| Utilities |
2,400 |
|
2,600 |
|
2,500 |
|
| Other operating expenses |
32,300 |
|
41,500 |
|
44,700 |
|
| Total |
$91,600 |
|
$112,200 |
|
$119,400 |
|
Other operating expenses include $3,000 of monthly depreciation expense and $500 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% 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.
EastFate Physical therapy INC.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31, 2017
|
January |
February |
March |
| Payments of prior month's expenses |
$ |
$ |
$ |
| Payments of current month's expenses |
|
|
|
| Total payment |
$ |
$ |
$ |