Crane 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. 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 $1,600 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) $24,000 20,000 3,200 112,000 112,000 5,600 61,600 80,000 40,000 56,000 40,000 9,600 188,000 304,000 160 Prepare a cash budget for each of the first two quarters of 2025.

Crane 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. 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 $1,600 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) $24,000 20,000 3,200 112,000 112,000 5,600 61,600 80,000 40,000 56,000 40,000 9,600 188,000 304,000 160 Prepare a cash budget for each of the first two quarters of 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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