Chapter 07 Homework (Application 120 300 Personal Budget 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) $8.500 Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 1,060 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. 4,600 410 230 600 Priscilla Wescott Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from Part-time job Deposit Total cash recept Less estimated cash payments for Season football tickets Additional entertainment Tuition Rent Food Deposit Total cash payments Cash increase (decrease) Plus cash balance at beginning of month Cash balance at end of month Check My Work Assignment Ser: 2.52% All work saved Save and Submit Anment for Grading Chapter 7 Homework (Application Estimated cash receipts from Part-time job Depot Total cash receipts Les estimated cash payments for Season football tickets Additional entertainment Deposit Cash increase (decream Plus Cashbalance at beginning of month Feedback Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? Learning Objective 2 and Learning Objective 5. b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? State c. What are the budget implications for Priscilla Wescott? Priscilla can see that her present plans se proste sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ the end of December, with no time left to adjust Feedback Feedback Partially correct Assignment Score: 2.82% Almar Save and Summet for Grading