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Current Attempt in Progress Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget
Current Attempt in Progress
Pletcher 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 2020. 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 | $36,300 | |
| Required minimum cash balance | 30,250 | |
| Payment of income taxes (2nd quarter) | 4,840 | |
| Professional salaries: | ||
| 1st quarter | 169,400 | |
| 2nd quarter | 169,400 | |
| Interest from investments (2nd quarter) | 8,470 | |
| Overhead costs: | ||
| 1st quarter | 93,170 | |
| 2nd quarter | 121,000 | |
| Selling and administrative costs, including | ||
| $2,420 depreciation: | ||
| 1st quarter | 60,500 | |
| 2nd quarter | 84,700 | |
| Purchase of equipment (2nd quarter) | 60,500 | |
| Sale of equipment (1st quarter) | 14,520 | |
| Collections from clients: | ||
| 1st quarter | 284,350 | |
| 2nd quarter | 459,800 | |
| Interest payments (2nd quarter) | 242 |
Prepare a cash budget for each of the first two quarters of 2020.
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