Pletcher 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 2020. 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 ....................................................................  77,000
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 patients:

1st quarter ...............................................................  235,000
2nd quarter .............................................................  380,000

Interest payments (2nd quarter) ...............................          200

Instructions

Prepare a cash budget for each of the first two quarters of 2020.