1. a. Prepare a preliminary cash budget for Alex for the year ending December 31, 2016, using...

Question:

1. a. Prepare a preliminary cash budget for Alex for the year ending December 31, 2016, using the format shown in Worksheet 2.3.

b. Compare Alex’s estimated expenses with his expected income and make recommendations that will help him balance his budget.

2. Make any necessary adjustments to Alex’s estimated monthly expenses, and revise his annual cash budget for the year ending December 31, 2016, using Worksheet 2.3.

3. Analyze the budget and advise Alex on his financial situation. Suggest some long-term, intermediate, and short-term financial goals for Alex, and discuss some steps he can take to reach them.

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...