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 2025. 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.

InstructionsPrepare a cash budget for each of the first two quarters of 2025.

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Beginning cash balance Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter Interest from investments (2nd quarter) Overhead costs: 1st quarter 2nd quarter Selling and administrative costs, including $2,000 depreciation: 1st quarter 2nd quarter Purchase of equipment (2nd quarter) Sale of equipment (1st quarter) Collections from patients: 1st quarter 2nd quarter Interest payments (2nd quarter) $ 30,000 25,000 4,000 140,000 140,000 7,000 77,000 100,000 50,000 70,000 50,000 12,000 235,000 380,000 200