chedule 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.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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
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 | |
| Payments of prior month's expense | $ | $26,430 | $32,610 |
| Payments of current month's expense | 61,670 | 76,090 | 81,130 |
| Total payments | $ | $102,520 | $113,740 |
Hello I have completed this except fo January number I could not figure it out!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
