Home / Questions / CASH BUDGET Dr Roger Jones is a successful dentist but he is experiencing recurring financ...
CASH BUDGET
Dr. Roger Jones is a successful dentist but he is experiencing recurring financial difficulties. For example, Dr. Jones owns his office building, which he leased to the professional corporation that housed his dental practice (he owns all shares in the corporation). However, Dr. Jones recently received a registered letter from the Internal Revenue Service threatening to impound his business and sell its assets for the corporation’s failure to pay payroll taxes for the past six months. Also, the corporation has had difficulty paying its suppliers, owing one of them over $200,000 plus interest. In the past, Dr. Jones had solved similar problems by borrowing money on the equity in either his personal residence or his office building. Not surprisingly, Dr. Jones has grown weary of these recurring problems and has hired a local consultant for advice on how to fix his financial problems. According to the analysis of the consultant, the financial difficulties facing Dr. Jones have been caused by the absence of proper planning and control. Budgetary control is sorely needed. To assist you in preparing a plan of action that will help his dental practice regain financial stability, Dr. Jones has made available the financial information describing a typical month in the following table.
Benefits include Dr. Jones’s share of social security and a health insurance premium for all employees. Although all revenues billed in a month are not collected, the cash flowing into the business is approximately equal to the month’s billings because of collections from prior months. The dental office is open Monday through Thursday from 8:30 a.m. to 4:00 p.m. and on Friday from 8:30 a.m. to 12:30 p.m. A total of 32 hours are worked each week. Additional hours could be worked, but Dr. Jones is reluctant to do so because of other personal endeavors that he enjoys. Dr. Jones has noted that the two dental assistants and receptionist are not fully utilized. He estimates that they are busy about 65 to 70 percent of the time. Dr. Jones’s wife spends about five hours each week on a monthly newsletter that is sent to all patients; she also maintains a birthday list and sends cards to patients on their birthdays. Dr. Jones spends about $2,400 yearly on informational seminars. These seminars, targeted especially for dentists, teach them how to increase their revenues. It is from one of these seminars that Dr. Jones decided to invest in promotion and public relations (the newsletter and the birthday list).
Apr 01 2020 View more View Less
The demand for cinnamon toast crunch brand cereal is:A. Equally elastic to the demand for cereal in general.B. Less elastic than the demand for cereal in general.C .None ...
Jun 06 20211. Discuss how aeration occurs and its role in the stream environment? 2. Explain why streams are said to be either- an erosion stage or deposition stage?
Mar 30 2020Places where goods are sold
May 13 2021When using the negotiated price approach to transfer pricing, within what range should the transfer price be established?Here is a tip:The division manager who has excess...
May 13 2021Explain your philosophy of education. Consider how your philosophy will affect your professional practice as g elementary teacher, implementing health education in your c...
Jul 12 2021Case 14-07eVade Pays UpeVade, an online retailer, fulfills its online orders by shipping its products directly tocustomers in all 50 states. eVade does not have a brick-a...
Jul 27 2020Suppose a product must go through an assembly line made up of five sequential and independent operations. The time it takes to complete each operation is normally distrib...
Aug 01 2020A C3 plant absorbs a carbon radioisotope (as part of 14CO2). In which compound does the labeled carbon appear first? Which compound forms first if a C4 plant absorbs the ...
Jul 04 2021What is the lewis structure of chloroform? What are its electron-pair and molecular geometry?
Jul 20 2021Mask stole one of Bloom's checks. The check was already signed by Bloom and made payable to Duval. The check was drawn on United Trust Company. Mask forged Duval's signat...
Aug 07 2021