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 for the spring semester tuition, which is the same as the full tuition. The following information relates to the budget:

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Chapter 7 Budgeting 347 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). . . . $6,000 Purchase season football tickets in September. . . . . 150 Additional entertainment for each month. .. .... 250 Pay fall semester tuition in September . . . .. . 3,500 Pay rent at the beginning of each month. . 450 Pay for food each month . . ...... . 400 Pay apartment deposit on September 2 (to be returned December 15) . .. . 450 Part-time job earnings each month (net of taxes) . .... .. 1,300 A. Prepare a cash budget for September, October, November, and December. B. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? C. What are the budget implications for Priscilla Wescott