Lager 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 2014. 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.

Exercise 21-19 Lager 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 2014. 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: $32,280 26,900 4,304 1st quarter 2nd quarter 150,640 150,640 5,380 Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter 80,700 107,600 Selling and administrative costs, including $3,228 depreciation: 53,800 75,320 53,800 16,140 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: 1st quarter 2nd quarter 247,480 408,880 323 Interest payments (2nd quarter) Prepare a cash budget for each of the first two quarters of 2014