Acc105 Managerial Accounting: E9-19 Lager Dental Clinic is a medium-sized dental service

Acc105 Managerial Accounting
Exercise 9-19
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 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

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