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Problem - Schedule of cash payments - Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2013. The Accrued Expenses Payable balance on July 1 is $28,000. The budgeted expenses for the next three months are as follows:
July
August
September
Salaries
$ 63,200
$ 78,100
$ 84,900
Utilities
5,300
5,600
7,100
Other operating expenses
48,500
52,700
58,200
Total
$117,000
$136,400
$150,200
Other operating expenses include $3,500 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on March 1 of the current 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 July 1 relates to the expenses incurred in June.
Required - Prepare a schedule of cash payments for operations for July, August, and September.
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