Lager dental clinic is a medium-sized dental service

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Reference no: EM13581055

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		$34,950
Required minimum cash balance		29,125
Payment of income taxes (2nd quarter)		4,660
Professional salaries:
1st quarter		163,100
2nd quarter		163,100
Interest from investments (2nd quarter)		5,825
Overhead costs:
1st quarter		87,375
2nd quarter		116,500
Selling and administrative costs, including
$3,495 depreciation:
1st quarter		58,250
2nd quarter		81,550
Purchase of equipment (2nd quarter)		58,250
Sale of equipment (1st quarter)		17,475
Collections from clients:
1st quarter		267,950
2nd quarter		442,700
Interest payments (2nd quarter)		350

Prepare a cash budget for each of the first two quarters of 2014.

Reference no: EM13581055

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