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 $41,460 Required minimum cash balance 34,550 Payment of income taxes (2nd quarter) 5,528 Professional salaries: 1st quarter 193,480 2nd quarter 193,480 Interest from investments (2nd quarter) 9,674 Overhead costs: 1st quarter 106,414 2nd quarter 138,200 Selling and administrative costs, including $2,764 depreciation: 1st quarter 69,100 2nd quarter 96,740 Purchase of equipment (2nd quarter) 69,100 Sale of equipment (1st quarter) 16,584 Collections from clients: 1st quarter 324,770 2nd quarter 525,160 Interest payments (2nd quarter) 276 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 1st Quarter 2nd Quarter $ $ : : : : $ $

Answer 1

	Qtr 1	Qtr 2	Total
Opening cash	41460	34550	41460
Add:- Cash receipts
Collection from clients	324770	525160	849930
Interest from Investments	-	9674	9674
Sale of equipment	16584	-	16584
Total cash collections	341354	534834	876188
Total Available cash	382814	569384	917648
Less:- cash disbursements
Income tax payment		5528	5528
Professional salaries	193480	193480	386960
Overhead costs	106414	138200	244614
Selling and adm. Costs ( excluding dep. )	66336	93976	160312
Purchase of equipment	-	69100	69100
Total cash disbursements	366230	500284	866514
Excess / deficit	16584	69100	51134
Financing:-
Add:- borrowings	17966	-	17966
Less:- Repayment [17966 + 276]	-	18242	18242
Ending cash balance	34550	50858	50858