Question

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March), 2015. The Accrued Expenses Payable balance on January 1 is $ 15,000. The budgeted expenses for the next three months are as follows:


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, andMarch.


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  • CreatedJune 27, 2014
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