Question 1 1 st Quarter 2 nd Quarter Open Show Work Question 1 Pletcher Dental C
ID: 2597883 • Letter: Q
Question
Question 1
1st Quarter
2nd Quarter
Open Show Work
Question 1
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 $38,220 Required minimum cash balance 31,850 Payment of income taxes (2nd quarter) 5,096 Professional salaries: 1st quarter 178,360 2nd quarter 178,360 Interest from investments (2nd quarter) 8,918 Overhead costs: 1st quarter 98,098 2nd quarter 127,400 Selling and administrative costs, including $2,548 depreciation: 1st quarter 63,700 2nd quarter 89,180 Purchase of equipment (2nd quarter) 63,700 Sale of equipment (1st quarter) 15,288 Collections from clients: 1st quarter 299,390 2nd quarter 484,120 Interest payments (2nd quarter) 255
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
June 30, 2017For the Month Ending June 30, 2017For the Two Quarters Ending June 30, 2017
1st Quarter
2nd Quarter
Excess (Deficiency) of Cash Available Over Cash DisbursementsEquipment PurchaseOverhead CostsFinancingTotal ReceiptsPayment of Income TaxesInvestment InterestSale of EquipmentProfessional SalariesDisbursementsReceiptsEnding Cash BalanceRepaymentsCollections from ClientsTotal DisbursementsTotal Cash AvailableSelling and Administrative CostsBorrowingsBeginning Cash Balance
$ $AddLess
:Investment InterestFinancingSelling and Administrative CostsTotal DisbursementsTotal Cash AvailableTotal ReceiptsBeginning Cash BalanceBorrowingsPayment of Income TaxesCollections from ClientsDisbursementsEnding Cash BalanceEquipment PurchaseExcess (Deficiency) of Cash Available Over Cash DisbursementsOverhead CostsProfessional SalariesReceiptsRepaymentsSale of Equipment
Sale of Equipment Collections from Clients Payment of Income Taxes Excess (Deficiency) of Cash Available Over Cash Disbursements Equipment Purchase Beginning Cash Balance Financing Total Cash Available Disbursements Ending Cash Balance Total Receipts Overhead Costs Borrowings Investment Interest Total Disbursements Professional Salaries Receipts Repayments Selling and Administrative Costs
Borrowings Payment of Income Taxes Collections from Clients Disbursements Excess (Deficiency) of Cash Available Over Cash Disbursements Ending Cash Balance Receipts Total Cash Available Overhead Costs Repayments Investment Interest Equipment Purchase Financing Sale of Equipment Selling and Administrative Costs Professional Salaries Total Disbursements Total Receipts Beginning Cash Balance
Total Receipts Financing Receipts Selling and Administrative Costs Sale of Equipment Investment Interest Payment of Income Taxes Repayments Ending Cash Balance Beginning Cash Balance Excess (Deficiency) of Cash Available Over Cash Disbursements Collections from Clients Borrowings Disbursements Professional Salaries Total Cash Available Equipment Purchase Overhead Costs Total Disbursements
Receipts Borrowings Disbursements Selling and Administrative Costs Beginning Cash Balance Total Receipts Equipment Purchase Total Cash Available Excess (Deficiency) of Cash Available Over Cash Disbursements Collections from Clients Total Disbursements Repayments Ending Cash Balance Financing Investment Interest Overhead Costs Sale of Equipment Payment of Income Taxes Professional Salaries
ReceiptsCollections from ClientsTotal DisbursementsProfessional SalariesFinancingInvestment InterestTotal Cash AvailableOverhead CostsPayment of Income TaxesBorrowingsEquipment PurchaseRepaymentsSale of EquipmentSelling and Administrative CostsDisbursementsExcess (Deficiency) of Cash Available Over Cash DisbursementsTotal ReceiptsBeginning Cash BalanceEnding Cash Balance
AddLess
:BorrowingsCollections from ClientsOverhead CostsSelling and Administrative CostsDisbursementsBeginning Cash BalancePayment of Income TaxesEnding Cash BalanceEquipment PurchaseExcess (Deficiency) of Cash Available Over Cash DisbursementsFinancingInvestment InterestProfessional SalariesReceiptsRepaymentsSale of EquipmentTotal Cash AvailableTotal DisbursementsTotal Receipts
Total Cash Available Total Disbursements Ending Cash Balance Payment of Income Taxes Financing Disbursements Equipment Purchase Collections from Clients Professional Salaries Receipts Excess (Deficiency) of Cash Available Over Cash Disbursements Repayments Beginning Cash Balance Total Receipts Borrowings Overhead Costs Investment Interest Sale of Equipment Selling and Administrative Costs
Beginning Cash Balance Sale of Equipment Borrowings Collections from Clients Payment of Income Taxes Disbursements Financing Equipment Purchase Total Disbursements Total Cash Available Selling and Administrative Costs Repayments Total Receipts Ending Cash Balance Excess (Deficiency) of Cash Available Over Cash Disbursements Investment Interest Overhead Costs Professional Salaries Receipts
Excess (Deficiency) of Cash Available Over Cash Disbursements Ending Cash Balance Disbursements Investment Interest Receipts Repayments Collections from Clients Total Disbursements Equipment Purchase Borrowings Financing Sale of Equipment Total Cash Available Overhead Costs Payment of Income Taxes Professional Salaries Selling and Administrative Costs Total Receipts Beginning Cash Balance
Receipts Ending Cash Balance Repayments Sale of Equipment Selling and Administrative Costs Beginning Cash Balance Payment of Income Taxes Borrowings Investment Interest Total Cash Available Professional Salaries Collections from Clients Disbursements Excess (Deficiency) of Cash Available Over Cash Disbursements Equipment Purchase Overhead Costs Financing Total Disbursements Total Receipts
Overhead Costs Payment of Income Taxes Selling and Administrative Costs Beginning Cash Balance Collections from Clients Professional Salaries Total Cash Available Total Disbursements Total Receipts Borrowings Disbursements Receipts Sale of Equipment Repayments Ending Cash Balance Financing Equipment Purchase Excess (Deficiency) of Cash Available Over Cash Disbursements Investment Interest
Sale of Equipment Receipts Selling and Administrative Costs Financing Investment Interest Equipment Purchase Repayments Excess (Deficiency) of Cash Available Over Cash Disbursements Professional Salaries Total Cash Available Ending Cash Balance Total Disbursements Total Receipts Beginning Cash Balance Overhead Costs Borrowings Payment of Income Taxes Collections from Clients Disbursements
Total ReceiptsEquipment PurchaseEnding Cash BalanceBeginning Cash BalanceBorrowingsCollections from ClientsExcess (Deficiency) of Cash Available Over Cash DisbursementsReceiptsSelling and Administrative CostsTotal DisbursementsProfessional SalariesDisbursementsInvestment InterestFinancingPayment of Income TaxesSale of EquipmentRepaymentsOverhead CostsTotal Cash Available
Ending Cash BalanceTotal Cash AvailableEquipment PurchasePayment of Income TaxesSale of EquipmentReceiptsExcess (Deficiency) of Cash Available Over Cash DisbursementsRepaymentsTotal DisbursementsCollections from ClientsFinancingTotal ReceiptsInvestment InterestBorrowingsOverhead CostsProfessional SalariesSelling and Administrative CostsBeginning Cash BalanceDisbursements
AddLess
:Collections from ClientsReceiptsOverhead CostsPayment of Income TaxesDisbursementsRepaymentsTotal Cash AvailableInvestment InterestTotal DisbursementsProfessional SalariesSale of EquipmentTotal ReceiptsEnding Cash BalanceEquipment PurchaseSelling and Administrative CostsExcess (Deficiency) of Cash Available Over Cash DisbursementsFinancingBeginning Cash BalanceBorrowings
AddLess
:Beginning Cash BalanceProfessional SalariesInvestment InterestSelling and Administrative CostsFinancingOverhead CostsDisbursementsTotal DisbursementsExcess (Deficiency) of Cash Available Over Cash DisbursementsReceiptsSale of EquipmentBorrowingsPayment of Income TaxesTotal Cash AvailableEnding Cash BalanceRepaymentsTotal ReceiptsCollections from ClientsEquipment Purchase
Collections from ClientsSale of EquipmentDisbursementsBeginning Cash BalanceTotal DisbursementsBorrowingsEnding Cash BalanceRepaymentsEquipment PurchaseExcess (Deficiency) of Cash Available Over Cash DisbursementsPayment of Income TaxesProfessional SalariesReceiptsFinancingSelling and Administrative CostsInvestment InterestOverhead CostsTotal Cash AvailableTotal Receipts
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Explanation / Answer
Note: Repayments includes interest of $255 paid in 2nd quarter as no separate heading could be located for the same. Please re-check prior to submission.
PLETCHER DENTAL CLINIC Cash Budget For the Two Quarters Ending June 31, 2017 1st Quarter 2nd Quarter Beginning cash balance 38220 31850 Add: Receipts Collections from clients 299390 484120 Investment Interest 8918 Sale of equipment 15288 Total receipts 314678 493038 Total cash available 352898 524888 Less: Disbursements Payment of income taxes 5096 Professional salaries 178360 178360 Overhead costs 98098 127400 Selling and administrative costs 61152 86632 Purchase of equipment 63700 Total disbursements 337610 461188 Excess (Deficiency) of cash available over cash disbursements 15288 63700 Financing: Add: Borrowings 16562 Less: Repayments -16817 Ending cash balance $ 31850 46883Related Questions
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