Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

image text in transcribed

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 2020. 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 $ 35,700 Required minimum cash balance 29,750 Payment of income taxes (2nd quarter) 4,760 Professional salaries: 1st quarter 166,600 2nd quarter 166,600 Interest from investments (2nd quarter) 8,330 Overhead costs: 1st quarter 91,630 2nd quarter 119,000 Selling and administrative costs, including $2,380 depreciation: 1st quarter 59,500 2nd quarter 83.300 Purchase of equipment (2nd quarter) 59,500 Sale of equipment (1st quarter) 14,280 Collections from clients: 1st quarter 279,650 2nd quarter 452.200 Interest payments (2nd quarter) 238 Prepare a cash budget for each of the first two quarters of 2020. PLETCHER DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2020 V 1st Quarter Beginning Cash Balance $ 35700 $ Add V: Receipts Collections from Clients Activate Windows Go to 429650 to act 279650 Windows Sale of Equipment 14280 Investment Interest Prepare a cash budget for each of the first two quarters of 2020. PLETCHER DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2020 1st Quarter Beginning Cash Balance $ 35700 $ Add Receipts Collections from Clients 279650 Sale of Equipment 14280 Investment Interest Total Receipts Total Cash Available Less Disbursements Professional Salaries 166600 Payment of Income Taxes Selling and Administrative Costs Equipment Purchase Overhead Costs 91630 Total Disbursements Excess (Deficiency) of Cash Available Over Cash Disbursements Financing Add Borrowings Less : Repayments Ending Cash Balance $ Activate Winds Prepare a cash budget for each of the first two quarters of 2020. PLETCHER DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2020 V 1st Quarter 2nd Quarter $ 35700 3 $ 29750 279650 452200 14280 8330 nents 166600 166600 es 4760 e Costs 91630 119000 sh Available Over Cash Disbursements ps nts $ $ Activate Windows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

13th Canadian Edition

1119740460, 978-1119740469

More Books

Students also viewed these Accounting questions

Question

7 How can a culture encourage ethical (or unethical) behaviour?

Answered: 1 week ago