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   $30,900 Required minimum cash balance   25,750 Payment of income taxes (2nd quarter)   4,120 Professional salaries:         1st quarter   144,200     2nd quarter   144,200 Interest from investments (2nd quarter)   7,210 Overhead costs:         1st quarter   79,310     2nd quarter   103,000 Selling and administrative costs, including     $2,060 depreciation:         1st quarter   51,500     2nd quarter   72,100 Purchase of equipment (2nd quarter)   51,500 Sale of equipment (1st quarter)   12,360 Collections from clients:         1st quarter   242,050     2nd quarter   391,400 Interest payments (2nd quarter)   206 Prepare a cash budget for each of the first two quarters of 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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   $30,900
Required minimum cash balance   25,750
Payment of income taxes (2nd quarter)   4,120
Professional salaries:    
    1st quarter   144,200
    2nd quarter   144,200
Interest from investments (2nd quarter)   7,210
Overhead costs:    
    1st quarter   79,310
    2nd quarter   103,000
Selling and administrative costs, including    
$2,060 depreciation:    
    1st quarter   51,500
    2nd quarter   72,100
Purchase of equipment (2nd quarter)   51,500
Sale of equipment (1st quarter)   12,360
Collections from clients:    
    1st quarter   242,050
    2nd quarter   391,400
Interest payments (2nd quarter)   206


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

PLETCHER DENTAL CLINIC
Cash Budget
                                                           For the Two Quarters Ending June 30, 2020June 30, 2020For the Month Ending June 30, 2020
   
1st Quarter
 
2nd Quarter
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