Medina 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 2012. 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 |
$ 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) |
5,000 |
|
Overhead costs: |
|
|
1st quarter |
75,000 |
|
2nd quarter |
100,000 |
|
Selling and administrative costs, including |
|
|
$3,000 depreciation: |
|
|
1st quarter |
50,000 |
|
2nd quarter |
70,000 |
|
Purchase of equipment (2nd quarter) |
50,000 |
|
Sale of equipment (1st quarter) |
15,000 |
|
Collections from clients: |
|
|
1st quarter |
230,000 |
|
2nd quarter |
380,000 |
|
Interest payments (2nd quarter) |
300 |
Instructions
Prepare a cash budget for each of the first two quarters of 2012.