Sheridan 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 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 $2,140 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) Beginning Cash Balance Total Receipts Add V $32,100 26,750 4,280 Investment Interest Sale of Equipment Collections from Clients 149,800 149,800 7,490 82,390 107,000 Prepare a cash budget for each of the first two quarters of 2020. 53,500 74,900 53,500 12,840 251,450 406,600 214 SHERIDAN DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2020 1st Quarter 32100 2nd Quarter 26750

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…