Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…

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Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…

Schedule of Cash Payments

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 $30,200. The budgeted expenses for the next three months are as follows:

JanuaryFebruaryMarch
Salaries$69,500$84,600$93,600
Utilities5,7006,3007,600
Other operating expenses52,80057,60063,400
Total$128,000$148,500$164,600

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.

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Reference no: EM132069492

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