Question

Exercise 21-19 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. $32,430 27,025 4,324 151,340 151,340 7,567 83,237 108,100 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 $2,162 depreciation: Ist quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (Ist quarter) Collections from dients: 1st quarter 2nd quarter Interest payments (2nd quarter) 54,050 75,670 54,050 12,972 254,035 410,780 216

Prepare a cash budget for each of the first two quarters of 2017. (Do not leave any answer field blank. Enter 0 for amounts.)

Answer 1

			Pletcher Dental Clinic
			Cash Budget
		For the Quarters Ending June 30,2017
				1st	2nd
				Quarter	Quarter
Beginning cash balance				32,430	27,025
Add:Receipts
Collection from Clients				254,035	410,780
Sale of Equipment				12,972	0
Investment Interest				0	7,567
total Receipts				267,007	418,347
total cash available				299,437	445,372
less:disbursements
professional salaries				151,340	151,340
payment of income taxes				0	4,324
Selling & administrative costs				51888	73508
Equipment purchase				0	54,050
overhead costs				83,237	108,100
total Disbursement				286,465	391,322
Excess(Deficiency)of cash available				12,972	54,050
financing:
Borrowing		(27025-12972)		14053	0
less:Repayments		(216+14053)		0	14269
ending cash balance				27,025	39,781