Question 3 Pletcher Dental Clinic is a medium-sized dental service specializing

Question

Question 3 Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2017. All that remains in this process is the cash budget. The following information has been collected from other portions of the master budget and elsewhere. Beginning cash balance Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: $39,180 32,650 5,224 1st quarter 2nd quarter 182,840 182,840 9,142 Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter 100,562 130,600 Selling and administrative costs, including $2,612 depreciation 65,300 91,420 65,300 15,672 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: st quarter 2nd quarter 306,910 496,280 261 Interest payments (2nd quarter) Prepare a cash budget for each of the first two quarters of 2017. (Do not leave any answer field blank. Enter 0 for amounts.) PLETCHER DENTAL CLINIC Cash Budget

Explanation / Answer

Cash budget Quarter-1 Quarter-2 Beginning Cash balance 39180 32650 Add: Receipts Collection from Cleint 306910 496280 Investment interest 9142 Sale of Equipment 15672 Total receits 322,582 505,422 Total cash available 361,762 538,072 Less: Disbursement Professional salaries 182840 182,840 Overheads cost 100562 130600 Selling and distribution Expense 62688 88808 Purchasse of equipment 65300 Interest payment 261 Income tax expense 5224 Total disbursement 346090 473033 Excess/(Deficiency) 15,672 65,039 Financing Add: Borrowings 16978 0 Less: Repayment 0 -16978 Ending Cash Balance 32650 48061

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.