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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

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.

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Beginning cash balance $ 30,000 Required minimum cash balance 25,000 Payment of income taxes (2nd quarter) 4,000 Professional salaries: 1st quarter 140,000 2nd quarter 140,000 Interest from investments (2nd quarter) 7,000 Overhead costs: 1st quarter 75,000 2nd quarter 100,000 Selling and administrative costs, including $2,000 depreciation: 1st quarter 50,000 2nd quarter 70,000 Purchase of equipment (2nd quarter) 50,000 Sale of equipment (1st quarter) 12,000 Collections from clients: 1st quarter 230,000 2nd quarter 380,000 Interest payments (2nd quarter) 400

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