Question

Question 10

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		$31,560
Required minimum cash balance		26,300
Payment of income taxes (2nd quarter)		4,208
Professional salaries:
1st quarter		147,280
2nd quarter		147,280
Interest from investments (2nd quarter)		7,364
Overhead costs:
1st quarter		81,004
2nd quarter		105,200
Selling and administrative costs, including
$2,104 depreciation:
1st quarter		52,600
2nd quarter		73,640
Purchase of equipment (2nd quarter)		52,600
Sale of equipment (1st quarter)		12,624
Collections from clients:
1st quarter		247,220
2nd quarter		399,760
Interest payments (2nd quarter)		210

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 Cash Budget 1st Quarter 2nd Quarter

please help!

Answer 1

Answer-10)-

Pletcher Dental Clinic
Cash Budget
Particulars	1st Quarter	2nd Quarter
	$	$
Beginning cash balance (A)	31560	26300
Add- Budgeted cash receipts
Collection from clients	247220	399760
Interest from investments	0	7364
Sale of equipment	12624	0
Total cash available for use (B)	291404	433424
Less- Cash Payments
Payment of income taxes	0	4208
Professional salaries	147280	147280
Overhead costs	81004	105200
Selling & Administrative costs excliuding depreciation	50496	71536
Purchase of equipment	0	52600
Interest payments	0	210
Total cash payments (C)	278780	381034
Cash surplus/ (Deficit) (D=A+B-C)	12624	52390
Financing:-
Add-Borrowings	13676	0
Less-Repayments	0	13676
Budgeted ending cash balance	26300	38714