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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
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 |
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