Question -

Pletcner 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 2017. 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 - $34,260

Required minimum cash balance - 28,550

Payment of income taxes (2nd quarter) - 4,568

Professional salaries:

1^st quarter - 159,880  

2^nd quarter - 159,880

Interest from investments (2nd quarter) - 7,994

Overhead mm:

1^st quarter - 87,943  

2^nd quarter - 114,200

Selling and administrative costs, including $2,284 depreciation:

1^st quarter - 57,100  

2^nd quarter - 79,940

Purchase of equipment (2nd quarter) - 57,100

Sale of equipment (1^st quarter) - -13,704

Collections from clients:

1^st quarter - 268,370  

2^nd quarter - 433,960

Interest payments (2nd quarter) - 228

Required - Prepare a cash budget for each of the first two quarters of 2017.