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 $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. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 6 fill in the blank 7 fill in the blank 8 Total cash payments $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 The specific Portion I am trying to figure out is the Unpaid Expenses x the Percent to Pay EASTGATE PHYSICAL THERAPY INC. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March Budgeted expenses $ 117,000 $ 136,400 $ 150,200 Unpaid Expenses Percent to Pay Payment of prior month's expense: ´ Pay in January $ 15,000 Pay in February $ 26,430 Pay in March $ 32,610 Payment of current month's expense: Pay in January $ 61,670 Pay in February 76,090 Pay in March 81,130 Total payment $ 76,670 $ 102,520 $ 113,740

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 $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. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 6 fill in the blank 7 fill in the blank 8 Total cash payments $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 The specific Portion I am trying to figure out is the Unpaid Expenses x the Percent to Pay EASTGATE PHYSICAL THERAPY INC. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March Budgeted expenses $ 117,000 $ 136,400 $ 150,200 Unpaid Expenses Percent to Pay Payment of prior month's expense: ´ Pay in January $ 15,000 Pay in February $ 26,430 Pay in March $ 32,610 Payment of current month's expense: Pay in January $ 61,670 Pay in February 76,090 Pay in March 81,130 Total payment $ 76,670 $ 102,520 $ 113,740

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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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 $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.

EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
	January	February	March
	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
	fill in the blank 6	fill in the blank 7	fill in the blank 8
Total cash payments	$fill in the blank 9	$fill in the blank 10	$fill in the blank 11

The specific Portion I am trying to figure out is the Unpaid Expenses x the Percent to Pay

EASTGATE PHYSICAL THERAPY INC.

Schedule of Cash Payments for Operations

For the Three Months Ending March 31

January

February

March

Budgeted expenses

$ 117,000

$ 136,400

$ 150,200

Unpaid Expenses

Percent
to Pay

Payment of prior month's expense:

Pay in January

$ 15,000

Pay in February

$ 26,430

Pay in March

$ 32,610

Payment of current month's expense:

Pay in January

$ 61,670

Pay in February

76,090

Pay in March

81,130

Total payment

$ 76,670

$ 102,520

$ 113,740

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