1. Donnegal 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 2010. 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

$3,000 depreciation:

1st quarter

2nd quarter

Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients:

1st quarter

2nd quarter

Interest payments (2nd quarter)

Instructions

$ 30,000 25,000 4,000

140,000 140,000 5,000

75,000

100,000Selling and administrative costs, including

50,000 70,000 50,000 15,000

230,000 380,000 300

Prepare a cash budget for each of the first two quarters of 2010.

1. Donnegal 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 2010. 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 $ 30,000 Required minimum cash balance 25,000 Payment of income taxes (2nd quarter) 4,000 Professional salaries: Ist quarter 140,000 2nd quarter 140,000 Interest from investments (2nd quarter) 5,000 Overhead costs: Ist quarter 75,000 2nd quarter 100,000Selling and administrative costs, including $3,000 depreciation: 1st quarter 50,000 2nd quarter 70,000 Purchase of equipment (2nd quarter) 50,000 Sale of equipment (1st quarter) 15,000 Collections from clients: 1st quarter 230,000 2nd quarter 380,000 Interest payments (2nd quarter) 300 Instructions Prepare a cash budget for each of the first two quarters of 2010