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$)$ $$6,670$

Purchase season football tickets in September $90$

Additional entertainment for each month $230$

Pay fall semester tuition in September $3,600$

Pay rent at the beginning of each month $320$

Pay for food each month $180$

Pay apartment deposit on September $2($to be returned December $15)500$

Part$-$time job earnings each month $($net of taxes$)830$

Question Content Area

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:

$$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$

$-$ Select $-$

Total cash receipts $fill in the blank $952$fbb$065$fa$501$d$\_8$ $fill in the blank $952$fbb$065$fa$501$d$\_9$ $fill in the blank $952$fbb$065$fa$501$d$\_10$ $fill in the blank $952$fbb$065$fa$501$d$\_11$

Less estimated cash payments for:

$$-$ Select $-$

$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$

$-$ Select $-$

$-$ Select $--$ Select $--$ Select $--$ Select $-$

$-$ Select $--$ Select $--$ Select $--$ Select $-$

$-$ Select $-$

Total cash payments $fill in the blank $952$fbb$065$fa$501$d$\_33$ $fill in the blank $952$fbb$065$fa$501$d$\_34$ $fill in the blank $952$fbb$065$fa$501$d$\_35$ $fill in the blank $952$fbb$065$fa$501$d$\_36$

Cash increase $($decrease$)$ $fill in the blank $952$fbb$065$fa$501$d$\_37$ $fill in the blank $952$fbb$065$fa$501$d$\_38$ $fill in the blank $952$fbb$065$fa$501$d$\_39$ $fill in the blank $952$fbb$065$fa$501$d$\_40$

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Cash balance at end of month $fill in the blank $952$fbb$065$fa$501$d$\_46$ $fill in the blank $952$fbb$065$fa$501$d$\_47$ $fill in the blank $952$fbb$065$fa$501$d$\_48$ $fill in the blank $952$fbb$065$fa$501$d$\_49$

Question Content Area

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?

Priscilla can see that her present plan

sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $fill in the blank f$29$ff$6026016044\_3$

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