Question: Schedule of Cash Payments
Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2017. The Accrued Expenses Payable balance on July 1 is $33,300. The budgeted expenses for the next three months are as follows:
|
July |
August |
September |
| Salaries |
$76,600 |
|
$93,200 |
|
$103,200 |
|
| Utilities |
6,300 |
|
7,000 |
|
8,300 |
|
| Other operating expenses |
58,200 |
|
63,400 |
|
69,800 |
|
| Total |
$141,100 |
|
$163,600 |
|
$181,300 |
|
Other operating expenses include $4,200 of monthly depreciation expense and $900 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 July 1 relates to the expenses incurred in June.
Prepare a schedule of cash payments for operations for July, August, and September.
| Select Physical Therapy Inc. |
| Schedule of Cash Payments for Operations |
| For the Three Months Ending September 30, 2017 |
|
July |
August |
September |
| Payments of prior month's expense |
$ |
$ |
$ |
| Payments of current month's expense |
|
|
|
| Total payment |
$ |
$ |
$ |