Question

Question 5 --/5 View Policies Current Attempt in Progress 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. $38,190 31,825 5,092 178,220 178,220 8,911 98,021 127,300 Beginning cash balance Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter Selling and administrative costs, including $2,546 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: 1st quarter 2nd quarter Interest payments (2nd quarter) 63,650 89,110 63,650 15,276 299,155 483,740 255 Prepare a cash budget for each of the first two quarters of 2017. (Do not leave any answer field blank. Enter o for amounts.)
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 $38,190 Required minimum cash balance 31,825 Payment of income taxes (2nd quarter) 5,092 Professional salaries: 1st quarter 178,220 2nd quarter 178,220 Interest from investments (2nd quarter) 8,911 Overhead costs: 1st quarter 98,021 2nd quarter 127,300 Selling and administrative costs, including $2,546 depreciation: 1st quarter 63,650 2nd quarter 89,110 Purchase of equipment (2nd quarter) 63,650 Sale of equipment (1st quarter) 15,276 Collections from clients: 1st quarter 299,155 2nd quarter 483,740 Interest payments (2nd quarter) 255

Answer 1

			Pletcher Dental Clinic
			Cash Budget
		For the Quarters Ending June 30,2017
				1st	2nd
				Quarter	Quarter
Beginning cash balance				38,190	31,825
Add:Receipts
Collection from Clients				299,155	483,740
Sale of Equipment				15,276	0
Investment Interest				0	8,911
total Receipts				314,431	492,651
total cash available				352,621	524,476
less:disbursements
professional salaries				178,220	178,220
payment of income taxes				0	5,092
Selling & administrative costs				61104	86564
Equipment purchase				0	63,650
overhead costs				98,021	127,300
total Disbursement				337,345	460,826
Excess(Deficiency)of cash available				15,276	63,650
financing:
Borrowing		(31825-15276)		16549	0
less:Repayments		(255+16549)		0	16804
ending cash balance				31,825	46,846