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		$36,000
Required minimum cash balance		30,000
Payment of income taxes (2nd quarter)		4,800
Professional salaries:
1st quarter		168,000
2nd quarter		168,000
Interest from investments (2nd quarter)		8,400
Overhead costs:
1st quarter		92,400
2nd quarter		120,000
Selling and administrative costs, including
$2,400 depreciation:
1st quarter		60,000
2nd quarter		84,000
Purchase of equipment (2nd quarter)		60,000
Sale of equipment (1st quarter)		14,400
Collections from clients:
1st quarter		282,000
2nd quarter		456,000
Interest payments (2nd quarter)		240

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

Prepare cash budget for each of Uhe firsit two quarters of 2020. Ch Budget Total ipts arymnt of Income Taxss SolinQ and Administrative Cost Ending Cash Ballan