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 2012. 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) | 5,000 | 
| Overhead costs: | 
 | 
| 1st quarter | 75,000 | 
| 2nd quarter | 100,000 | 
| Selling and administrative costs, including | 
 | 
| $3,000 depreciation: | 
 | 
| 1st quarter | 50,000 | 
| 2nd quarter | 70,000 | 
| Purchase of equipment (2nd quarter) | 50,000 | 
| Sale of equipment (1st quarter) | 15,000 | 
| Collections from clients: | 
 | 
| 1st quarter | 230,000 | 
| 2nd quarter | 380,000 | 
| Interest payments (2nd quarter) | 300 | 
Instructions
Prepare a cash budget for each of the first two quarters of 2012.