Question:
Total Flex Physical Therapy Inc. is planning its cash payments for operations for the fourth quarter (October-December), 2009. The Accrued Expenses Payable balance on October 1 is $22,600. The budgeted expenses for the next three months are as follows:
|
|
October
|
November
|
December
|
|
Salaries
|
$ 58,200
|
$ 63,500
|
$ 74,500
|
|
Utilities
|
5,300
|
5,600
|
7,100
|
|
Other operating expenses
|
44,700
|
52,800
|
62,700
|
|
Total
|
$108,200
|
$121,900
|
$144,300
|
Other operating expenses include $10,500 of monthly depreciation expense and $600 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 October 1 relates to the expenses incurred in September.
Prepare a schedule of cash payments for operations for October, November, and December.