Question

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. $34,260 28,550 4,568 159,880 159,880 7,994 87,934 114,200 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 $2,284 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) 57,100 79,940 57,100 13,704 268,370 433,960 228

Answer 1

			Pletcher Dental Clinic
			Cash Budget
		For the Quarters Ending June 30,2017
				1st	2nd
				Quarter	Quarter
Beginning cash balance				34,260	28,550
Add:Receipts
Collection from Clients				268,370	433,960
Sale of Equipment				13,704	0
Investment Interest				0	7,994
total Receipts				282,074	441,954
total cash available				316,334	470,504
less:disbursements
professional salaries				159,880	159,880
payment of income taxes				0	4,568
Selling & administrative costs				54816	77656
Equipment purchase				0	57,100
overhead costs				87,934	114,200
total Disbursement				302,630	413,404
Excess(Deficiency)of cash available				13,704	57,100
financing:
Borrowing		(28550-13704)		14,846	0
less:Repayments		(288+14846))		0	15134
ending cash balance				28,550	41,966