Question
Indigo Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the budget for the first two quarters
Indigo Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the budget for the first two quarters of 2022. It still needs to do only the cash budget. It has collected the following information from parts of the master budget and elsewhere:
| Beginning cash balance | $ 30,200 | |
| Required minimum cash balance | 20,000 | |
| Payment of income taxes (2nd quarter) | 4,000 | |
| Professional salaries: | ||
| 1st quarter | 141,400 | |
| 2nd quarter | 141,400 | |
| Interest from investments (2nd quarter) | 6,900 | |
| Overhead costs: | ||
| 1st quarter | 95,100 | |
| 2nd quarter | 119,800 | |
| Selling and administrative expenses, including | ||
| $3,000 depreciation: | ||
| 1st quarter | 49,800 | |
| 2nd quarter | 70,000 | |
| Purchase of equipment (2nd quarter) | 50,000 | |
| Sale of equipment (1st quarter) | 12,000 | |
| Collections from clients: | ||
| 1st quarter | 245,500 | |
| 2nd quarter | 391,500 | |
| Interest on repayments (2nd quarter) | 312 |
Prepare a cash budget for each of the first two quarters of 2022.
| INDIGO DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2022 | |||
|---|---|---|---|
| Quarters | |||
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Horngrens Accounting, The Managerial Chapters
Authors: Tracie Miller Nobles, Brenda Mattison
13th Edition
0135982138, 9780135982136
