Question 3 Pletcher Dental Clinic is a mediumsized dental se

Question 3 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 Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: $39,180 32,650 5,224 1st quarter 2nd quarter 182,840 182,840 9,142 Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter 100,562 130,600 Selling and administrative costs, including $2,612 depreciation 65,300 91,420 65,300 15,672 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: st quarter 2nd quarter 306,910 496,280 261 Interest payments (2nd quarter) 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

Solution

Ans. PLETCHER DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2017 1st Quarter 2nd Quarter Beginning Cash balance          39,180          381,352 Add: Receipts     Collection from clients        306,910          496,280     Interest from Investment                    -                9,142     Sale of Equipment          15,672                     -       Professional Salaries        182,840          182,840                       Total Receipts        505,422          688,262 Total Cash available        544,602      1,069,614 Less: Dibursements     Investment Interest                    -                    261     Overhead Cost        100,562          130,600     Selling and Administrative cost          62,688            88,808     Equipment Purchase                    -              65,300     Payment of Income taxes                    -                5,224                        Total Disbursements        163,250          290,193 Excess (Deficiency) of cash available Over Cash Disbursements        381,352          779,421 Financing: Add: Borrowings                    -                       -   Less: Repayments                    -                       -   Ending Cash balance       381,352          779,421