Deitz 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 2011. 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) . 5,000

Overhead costs:

1st quarter ......... 75,000

2nd quarter ......... 100,000

Selling and administrative costs, including

$3,000 depreciation:

1st quarter ......... 50,000

2nd quarter ........ 70,000

Purchase of equipment (2nd quarter) . 50,000

Sale of equipment (1st quarter) .... 15,000

Collections from clients:

1st quarter ........ 230,000

2nd quarter .......... 380,000

Interest payments (2nd quarter) ..... 300

Instructions

Prepare a cash budget for each of the first two quarters of 2011.