Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have everything done but the blank at the bottom. Thank you in advance and please provide work if possible. Personal Budget At the beginning

I have everything done but the blank at the bottom. Thank you in advance and please provide work if possible. image text in transcribedimage text in transcribed

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) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September $7,150 100 250 3,900 350 200 500 890 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) 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: Part-time job 890 $ 890 $ 890 $ Deposit 890 500 1,390 Total cash receipts 890 $ 890 $ 890 $ Less estimated cash payments for: Less estimated cash payments for: Season football tickets $ 100 250 Additional entertainment $ 250 $ 250 $ 250 Tuition 3,900 Rent 350 200 350 200 350 200 Food Deposit Total cash payments 350 200 500 5,300 4,410 7,150 2,740 $ $ $ $ Cash increase (decrease) Plus cash balance at beginning of month 800 90 2,740 2,830 800 90 2,830 2,920 $ $ 2 $ 800 590 ,920 3,510 Cash balance at end of month $ $ Feedback b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static c. What are the budget implications for Priscilla Wescott? Priscilla can see that her present plan will not provide sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ X short at the end of December, with no time left to adjust

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Systems Audit Risk Mitigation

Authors: Mr Indulis L Svikis

1st Edition

B084DGQJJ5, 979-8607031909

More Books

Students also viewed these Accounting questions