Exercise 21-19 Pletcher Dental Clinic is a medium-sized dental service specializ
ID: 2549606 • Letter: E
Question
Exercise 21-19
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.
PLETCHER DENTAL CLINIC
Cash Budget
1st Quarter
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.)
Beginning cash balance $32,430 Required minimum cash balance 27,025 Payment of income taxes (2nd quarter) 4,324 Professional salaries: 1st quarter 151,340 2nd quarter 151,340 Interest from investments (2nd quarter) 7,567 Overhead costs: 1st quarter 83,237 2nd quarter 108,100 Selling and administrative costs, including $2,162 depreciation: 1st quarter 54,050 2nd quarter 75,670 Purchase of equipment (2nd quarter) 54,050 Sale of equipment (1st quarter) 12,972 Collections from clients: 1st quarter 254,035 2nd quarter 410,780 Interest payments (2nd quarter) 216Explanation / Answer
Giving answer based on the info availabel in que, however questiion seems partially given:
Q1 Q2 Cash balance 32430 27025 add Collection fromm Clients 254035 410780 add Sale of Equipment 12972 add Interest from investment 7567 A Total Cash available 299437 445372 Income Tax 4324 Salaries 151340 151340 assuming paid in same month Overhead 83237 108100 assuming paid in same month Selling and Admin (Excluding Dep) 51888 73508 assuming paid in same month Equipment Purchase 54050 Interst Payment 216 B Total Cash Payment 286465 391538 Cash Excess/(Deficit) 12972 53834 Minmum Cash Balance 27025 Hence to be borrowed (27025-12972) 14053Related Questions
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