• Create a quarterly cash budget for Adam and Bird that covers the months of October through December 2013.
• Are there specific months with a deficit?
• What is the accumulated cash surplus or deficit at the end of December 2013?

Cash Budgeting Adam and Bird need to build a cash budget for the last quarter of 2013 to make sure they can cover their expenses during the period. Adam and Bird have been budgeting for the past several years and have set specific percentages for most of their cash outflows. These percentages are based on your net wages (that is, monthly services typically represent 5% of net wages). Use the information in the following table to prepare your budget for the fourth quarter of 2013.

Income: Net monthly wages $ 4,900

Expenses

Home 30%

Services 5%

Food 10%

Transportation 7%

Medical / dental expenses .5%

October and November clothing 3%

December clothing $ 440

Property tax (only November) 11.5%

Appliances 1%

Personal care 2%

October and November fun 6%

December fun $ 1,500

Savings 7.5%

Others 5%

Cash in excess 4.5%