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Question 18 Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the
Question 18
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 | $40,800 | |
| Required minimum cash balance | 34,000 | |
| Payment of income taxes (2nd quarter) | 5,440 | |
| Professional salaries: | ||
| 1st quarter | 190,400 | |
| 2nd quarter | 190,400 | |
| Interest from investments (2nd quarter) | 9,520 | |
| Overhead costs: | ||
| 1st quarter | 104,720 | |
| 2nd quarter | 136,000 | |
| Selling and administrative costs, including | ||
| $2,720 depreciation: | ||
| 1st quarter | 68,000 | |
| 2nd quarter | 95,200 | |
| Purchase of equipment (2nd quarter) | 68,000 | |
| Sale of equipment (1st quarter) | 16,320 | |
| Collections from clients: | ||
| 1st quarter | 319,600 | |
| 2nd quarter | 516,800 | |
| Interest payments (2nd quarter) | 272 |
Prepare a cash budget for each of the first two quarters of 2017. (Do not leave any answer field blank. Enter 0 for amounts.)
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