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E10.31(LO 4,5) Prepare a cash budget for two quarters. Pisani Dental Clinic is...

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Accounting

E10.31(LO 4,5) Prepare a cash budget for two quarters.
Pisani Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the budget for the first two quarters of 2022. Only the cash budget remains to be done. It has collected the following information from parts of the master budget and elsewhere:
Beginning cash balance $
30,000
Required minimum cash balance 20,000
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 95,000
2nd quarter 120,000
Selling and administrative expenses, including $3,000 of 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 245,000
2nd quarter 390,000
Interest on repayments(2nd quarter)300
Instructions:
Prepare a cash budget for each of the first two quarters of 2022.

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