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.

Beginning cash balance		$39,180
Required minimum cash balance		32,650
Payment of income taxes (2nd quarter)		5,224
Professional salaries:
1st quarter		182,840
2nd quarter		182,840
Interest from investments (2nd quarter)		9,142
Overhead costs:
1st quarter		100,562
2nd quarter		130,600
Selling and administrative costs, including
$2,612 depreciation:
1st quarter		65,300
2nd quarter		91,420
Purchase of equipment (2nd quarter)		65,300
Sale of equipment (1st quarter)		15,672
Collections from clients:
1st quarter		306,910
2nd quarter		496,280
Interest payments (2nd quarter)		261

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

Answer 1

ANSWER

Cash Budget- Pletcher Denal Clinic
	Ist Qtr	Iind Qtr
Beginning Balance	$39,180	$32,650
Add: Cash Receipts
Collection From Customer	$306,910	$496,280
Sale Of Equipment	$15,672
Interest On Investment		$9,142
Total Receipts	$322,582.00	$505,422.00
Total Cash Available	$361,762.00	$538,072.00
Less: Cash Disbursement
Professional Salary	$182,840	$182,840
Overhead Cost	$100,562	$130,600
Selling & Administration Cost	$62,688	$88,808
Equipment Purchase		$65,300
Payment Of Income Tax		$5,224
Total Disbursements	$346,090.00	$472,772.00
Excess Of Cash Available Over Disbursement	$15,672.00	$65,300.00
Financing :
Add: Borrowing (32,650-15,672)	$16,978
Less: Repayments (16,978+261)		-$17,239
Ending Cash Balance	$32,650.00	$48,061.00

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