At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1 (from a summer job)	$5,750
Purchase season football tickets in September	210
Additional entertainment for each month	275
Pay fall semester tuition in September	3,700
Pay rent at the beginning of each month	600
Pay for food each month	235
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	1,400

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

Katherine Malloy
Cash Budget
For the Four Months Ending December 31
	September	October	November	December
Estimated cash receipts from:
Part-time job	$fill in the blank 5dd4b306e02afa2_1	$fill in the blank 5dd4b306e02afa2_2	$fill in the blank 5dd4b306e02afa2_3	$fill in the blank 5dd4b306e02afa2_4
Deposit				fill in the blank 5dd4b306e02afa2_5
Total cash receipts	$fill in the blank 5dd4b306e02afa2_6	$fill in the blank 5dd4b306e02afa2_7	$fill in the blank 5dd4b306e02afa2_8	$fill in the blank 5dd4b306e02afa2_9
Estimated cash payments for:
Season football tickets	$fill in the blank 5dd4b306e02afa2_10
Additional entertainment	fill in the blank 5dd4b306e02afa2_11	$fill in the blank 5dd4b306e02afa2_12	$fill in the blank 5dd4b306e02afa2_13	$fill in the blank 5dd4b306e02afa2_14
Tuition	fill in the blank 5dd4b306e02afa2_15
Rent	fill in the blank 5dd4b306e02afa2_16	fill in the blank 5dd4b306e02afa2_17	fill in the blank 5dd4b306e02afa2_18	fill in the blank 5dd4b306e02afa2_19
Food	fill in the blank 5dd4b306e02afa2_20	fill in the blank 5dd4b306e02afa2_21	fill in the blank 5dd4b306e02afa2_22	fill in the blank 5dd4b306e02afa2_23
Deposit	fill in the blank 5dd4b306e02afa2_24
Total cash payments	$fill in the blank 5dd4b306e02afa2_25	$fill in the blank 5dd4b306e02afa2_26	$fill in the blank 5dd4b306e02afa2_27	$fill in the blank 5dd4b306e02afa2_28
Cash increase (decrease)	$fill in the blank 5dd4b306e02afa2_29	$fill in the blank 5dd4b306e02afa2_30	$fill in the blank 5dd4b306e02afa2_31	$fill in the blank 5dd4b306e02afa2_32
Cash balance at beginning of month	fill in the blank 5dd4b306e02afa2_33	fill in the blank 5dd4b306e02afa2_34	fill in the blank 5dd4b306e02afa2_35	fill in the blank 5dd4b306e02afa2_36
Cash balance at end of month	$fill in the blank 5dd4b306e02afa2_37	$fill in the blank 5dd4b306e02afa2_38	$fill in the blank 5dd4b306e02afa2_39	$fill in the blank 5dd4b306e02afa2_40

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. Malloy can see that her present plan sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank c85ef80e3fd5f95_3 at the end of December, with no time left to adjust.