Question

cut one dental assistant, eliminate the salary to mrs. jones and the activities she does, and cut dr. joness salary numbers unless there is a deficiency. prepare a cash budget that reflects this recommendation. dr. roger jones revised cash budget line item description amount cash collections and cash available $21,360 less cash disbursements: salaries $9,750 benefits building lease $1,500 dental supplies $1,200 janitorial $300 utilities $400 phone $150 office supplies $100 lab fees $5,000 loan payments $570 interest payments $500 miscellaneous $200 total cash needs $ excess (deficiency) of cash available over needs $ 2c. a third possibility is to increase the fees charged for the various dental services. what amount of increase in revenues is needed to cover the deficiency from requirement 1? $

Explanation:

Step1: Calculate total cash disbursements

Add up all the cash - disbursement amounts.
$9750+0 + 1500+1200+300+400+150+100+5000+570+500+200=\$19670$

Step2: Calculate excess (deficiency) of cash available over needs

Subtract total cash needs from cash collections and cash available.
$21360 - 19670=\$1690$

Answer:

Total cash needs: $\$19670$
Excess (deficiency) of cash available over needs: $\$1690$