Exercise 9-19

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		$33,000
Required minimum cash balance		27,500
Payment of income taxes (2nd quarter)		4,400
Professional salaries:
1st quarter		154,000
2nd quarter		154,000
Interest from investments (2nd quarter)		7,700
Overhead costs:
1st quarter		84,700
2nd quarter		110,000
Selling and administrative costs, including
$2,200 depreciation:
1st quarter		55,000
2nd quarter		77,000
Purchase of equipment (2nd quarter)		55,000
Sale of equipment (1st quarter)		13,200
Collections from clients:
1st quarter		258,500
2nd quarter		418,000
Interest payments (2nd quarter)		220

Prepare a cash budget for each of the first two quarters of 2020.

PLETCHER DENTAL CLINIC Cash Budget June 30, 2020For the Two Quarters Ending June 30, 2020For the Month Ending June 30, 2020
		1st Quarter		2nd Quarter
		$		$
		$		$