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Personal Budget

At the beginning of the school year, Katherine Malloy 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)	$8,680
Purchase season football tickets in September	120
Additional entertainment for each month	300
Pay fall semester tuition in September	4,700
Pay rent at the beginning of each month	420
Pay for food each month	240
Pay apartment deposit on September 2 (to be returned December 15)	600
Part-time job earnings each month (net of taxes)	1,080

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

KATHERINE MALLOY Cash Budget For the Four Months Ending December 31

	September	October	November	December
Estimated cash receipts from:
Part-time job	$fill in the blank 0592730b6069034_1	$fill in the blank 0592730b6069034_2	$fill in the blank 0592730b6069034_3	$fill in the blank 0592730b6069034_4
Deposit				fill in the blank 0592730b6069034_5
Total cash receipts	$fill in the blank 0592730b6069034_6	$fill in the blank 0592730b6069034_7	$fill in the blank 0592730b6069034_8	$fill in the blank 0592730b6069034_9
Estimated cash payments for:
Season football tickets	$fill in the blank 0592730b6069034_10
Additional entertainment	fill in the blank 0592730b6069034_11	$fill in the blank 0592730b6069034_12	$fill in the blank 0592730b6069034_13	$fill in the blank 0592730b6069034_14
Tuition	fill in the blank 0592730b6069034_15
Rent	fill in the blank 0592730b6069034_16	fill in the blank 0592730b6069034_17	fill in the blank 0592730b6069034_18	fill in the blank 0592730b6069034_19
Food	fill in the blank 0592730b6069034_20	fill in the blank 0592730b6069034_21	fill in the blank 0592730b6069034_22	fill in the blank 0592730b6069034_23
Deposit	fill in the blank 0592730b6069034_24
Total cash payments	$fill in the blank 0592730b6069034_25	$fill in the blank 0592730b6069034_26	$fill in the blank 0592730b6069034_27	$fill in the blank 0592730b6069034_28
Overall cash increase (decrease)	$fill in the blank 0592730b6069034_29	$fill in the blank 0592730b6069034_30	$fill in the blank 0592730b6069034_31	$fill in the blank 0592730b6069034_32
Cash balance at beginning of month	fill in the blank 0592730b6069034_33	fill in the blank 0592730b6069034_34	fill in the blank 0592730b6069034_35	fill in the blank 0592730b6069034_36
Cash balance at end of month	$fill in the blank 0592730b6069034_37	$fill in the blank 0592730b6069034_38	$fill in the blank 0592730b6069034_39	$fill in the blank 0592730b6069034_40

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

StaticFlexibleStatic

c. Malloy can see that her present plan

will providewill not providewill not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank b4f2c8fec06202f_3

overshortshort

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