MODULE 5 EXERCISES E9-19 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: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter Selling and administrative costs, including $2,000 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: 1st quarter 2nd quarter Interest payments (2nd quarter) Instructions Prepare a cash budget for each of the first two quarters of 2014. $ 30,000 25,000 4,000 140,000 140,000 7,000 75,000 100,000 50,000 70,000 50,000 12,000 230,000 380,000 400
MODULE 5 EXERCISES E9-19 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: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter Selling and administrative costs, including $2,000 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from clients: 1st quarter 2nd quarter Interest payments (2nd quarter) Instructions Prepare a cash budget for each of the first two quarters of 2014. $ 30,000 25,000 4,000 140,000 140,000 7,000 75,000 100,000 50,000 70,000 50,000 12,000 230,000 380,000 400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:MODULE 5 EXERCISES
E9-19 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:
1st quarter
2nd quarter
Interest from investments (2nd quarter)
Overhead costs:
1st quarter
2nd quarter
Selling and administrative costs, including
$2,000 depreciation:
1st quarter
2nd quarter
Purchase of equipment (2nd quarter)
Sale of equipment (1st quarter)
Collections from clients:
1st quarter
2nd quarter
Interest payments (2nd quarter)
Instructions
Prepare a cash budget for each of the first two quarters of 2014.
$30,000
25,000
4,000
140,000
140,000
7,000
75,000
100,000
50,000
70,000
50,000
12,000
230,000
380,000
400
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