MODULE 5 EXERCISES E9-19 Lager 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 2014. 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 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 clients: 1st quarter 2nd quarter Interest payments (2nd quarter) Instructions Prepare a cash budget for each of the first two quarters of 2014. $ 30,000 25,000 4,000 140,000 140,000 7,000 75,000 100,000 50,000 70,000 50,000 12,000 230,000 380,000 400

MODULE 5 EXERCISES E9-19 Lager 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 2014. 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 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 clients: 1st quarter 2nd quarter Interest payments (2nd quarter) Instructions Prepare a cash budget for each of the first two quarters of 2014. $ 30,000 25,000 4,000 140,000 140,000 7,000 75,000 100,000 50,000 70,000 50,000 12,000 230,000 380,000 400

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6PA: Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were...

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