Crane 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 2025. 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 $1,600 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from patients: 1st quarter 2nd quarter Interest payments (2nd quarter) $24,000 20,000 3,200 112,000 112,000 5,600 61,600 80,000 40,000 56,000 40,000 9,600 188,000 304,000 160 Prepare a cash budget for each of the first two quarters of 2025.
Crane 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 2025. 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 $1,600 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from patients: 1st quarter 2nd quarter Interest payments (2nd quarter) $24,000 20,000 3,200 112,000 112,000 5,600 61,600 80,000 40,000 56,000 40,000 9,600 188,000 304,000 160 Prepare a cash budget for each of the first two quarters of 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Crane Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the
budget for the first 2 quarters of 2025. 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
$1,600 depreciation:
1st quarter
2nd quarter
Purchase of equipment (2nd quarter)
Sale of equipment (1st quarter)
Collections from patients:
1st quarter
2nd quarter
Interest payments (2nd quarter)
$24,000
20,000
3,200
112,000
112,000
5,600
61,600
80,000
40,000
56,000
40,000
9,600
188,000
304,000
160
Prepare a cash budget for each of the first two quarters of 2025.
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