Concord 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 2022. 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 Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead cost 1st quarter 2nd quarter Selling and administrative costs, including $2,240 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) $33,600 28,000 4,480 156,800 156,800 7,840 86,240 112,000 56,000 78,400 56,000 13,440
Concord 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 2022. 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 Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead cost 1st quarter 2nd quarter Selling and administrative costs, including $2,240 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) $33,600 28,000 4,480 156,800 156,800 7,840 86,240 112,000 56,000 78,400 56,000 13,440
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Sale of equipment (1st quarter)
Collections from patients:
1st quarter
2nd quarter
Interest payments (2nd quarter)
Payment of Income Taxes
Repayments
Professional Salaries
Borrowings
Overhead Costs
Prepare a cash budget for each of the first two quarters of 2022.
Equipment Purchase
Investment Interest
Financing
Disbursements
13,440
Total Disbursements
Collections from Patients
263,200
Receipts
Selling and Administrative Costs
Sale of Equipment
Total Cash Available
Excess (Deficiency) of Cash Available Over Cash Disbursements
Ending Cash Balance
Beginning Cash Balance
Total Receipts
425,600
224
O DENTAL CLINIC
ish Budget
1st Quarter
$
2nd Quarter
Transcribed Image Text:Concord 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 2022. 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
Required minimum cash balance
Payment of income taxes (2nd quarter)
Professional salaries:
1st quarter
2nd quarter
Interest from investments (2nd quarter)
Overhead costs:
1st quarter
2nd quarter
Selling and administrative costs, including
$2,240 depreciation:
1st quarter
2nd quarter
Purchase of equipment (2nd quarter)
Sale of equipment (1st quarter)
$33,600
28,000
4,480
156,800
156,800
7,840
86,240
112,000
56,000
78,400
56,000
13,440
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