At the beginning of the school year, Priscilla Wescott 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)	$5,050
Purchase season football tickets in September	130
Additional entertainment for each month	220
Pay fall semester tuition in September	2,900
Pay rent at the beginning of each month	400
Pay for food each month	360
Pay apartment deposit on September 2 (to be returned December 15)	400
Part-time job earnings each month (net of taxes)	1,150

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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

Priscilla Wescott
Cash Budget
For the Four Months Ending December 31
	September		October		November		December
Estimated cash receipts from:
Additional entertainmentFoodPart-time jobRentTuition		$fill in the blank 3		$fill in the blank 4		$fill in the blank 5		$fill in the blank 6
Additional entertainmentDepositFoodRentTuition								fill in the blank 8
Total cash receipts		$fill in the blank 9		$fill in the blank 10		$fill in the blank 11		$fill in the blank 12
Less estimated cash payments for:
CashInsuranceMovie ticketsPart-time jobSeason football tickets		$fill in the blank 14
Additional entertainmentCashInsuranceMovie ticketsPart-time job		fill in the blank 16		$fill in the blank 17		$fill in the blank 18		$fill in the blank 19
CashInsuranceMovie ticketsPart-time jobTuition		fill in the blank 21
CashInsuranceMovie ticketsPart-time jobRent		fill in the blank 23		fill in the blank 24		fill in the blank 25		fill in the blank 26
CashFoodInsuranceMovie ticketsPart-time job		fill in the blank 28		fill in the blank 29		fill in the blank 30		fill in the blank 31
DepositInsuranceMovie ticketsPart-time jobPrepaid rent		fill in the blank 33
Total cash payments		$fill in the blank 34		$fill in the blank 35		$fill in the blank 36		$fill in the blank 37
Cash increase (decrease)		$fill in the blank 38		$fill in the blank 39		$fill in the blank 40		$fill in the blank 41
Less cash balance at beginning of monthPlus cash balance at beginning of month		fill in the blank 43		fill in the blank 44		fill in the blank 45		fill in the blank 46
Cash balance at end of month		$fill in the blank 47		$fill in the blank 48		$fill in the blank 49		$fill in the blank 50

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

StaticFlexible

c. What are the budget implications for Priscilla Wescott?

Priscilla can see that her present plan

will providewill not provide

sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $fill in the blank 53

overshort

at the end of December, with no time left to adjust.